LVMH 2019 First Half Financial Report

TRANSLATION OF THE FRENCH
INTERIM FINANCIAL REPORT
SIX-MONTH PERIOD ENDED JUNE 30, 2019

CONTENTS
EXECUTIVE AND SUPERVISORY BODIES; STATUTORY AUDITORS AS OF JUNE 30, 2019 1

FINANCIAL HIGHLIGHTS 2
HIGHLIGHTS 4
SHARE CAPITAL AND VOTING RIGHTS 4
BUSINESS REVIEW AND COMMENTS ON THE HALF-YEAR CONSOLIDATED

5
FINANCIAL STATEMENTS OF LVMH GROUP
COMMENTS ON THE CONSOLIDATED INCOME STATEMENT 6

WINES & SPIRITS 10
FASHION & LEATHER GOODS 11
PERFUMES & COSMETICS 13
WATCHES & JEWELRY 14
SELECTIVE RETAILING 15
COMMENTS ON THE CONSOLIDATED BALANCE SHEET 16
COMMENTS ON THE CONSOLIDATED CASH FLOW STATEMENT 18
CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS 21
CONSOLIDATED INCOME STATEMENT 22

CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES 23
CONSOLIDATED BALANCE SHEET 24
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 25
CONSOLIDATED CASH FLOW STATEMENT 26
SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 27
STATUTORY AUDITORS’ REVIEW REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION 58
STATEMENT BY THE COMPANY OFFICER RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT 59
This document is a free translation into English of the original French “Rapport financier semestriel”, hereafter referred
to as the “Interim Financial Report”. It is not a binding document. In the event of a conflict in interpretation, reference should
be made to the French version, which is the authentic text.
EXECUTIVE AND SUPERVISORY BODIES; STATUTORY AUDITORS
AS OF JUNE 30, 2019
Board of Executive Performance

Directors Committee Audit Committee
Bernard Arnault Bernard Arnault Yves-Thibault de Silguy (a)

Chairman and Chief Executive Officer Chairman and Chief Executive Officer Chairman
Antonio Belloni Antonio Belloni Antoine Arnault
Group Managing Director Group Managing Director
Charles de Croisset (a)
Antoine Arnault Delphine Arnault
Louis Vuitton Products
Delphine Arnault
Nicolas Bazire Nominations and
Nicolas Bazire
Development and Acquisitions Compensation Committee
Sophie Chassat (a)
Pietro Beccari
Charles de Croisset (a) Christian Dior Couture Charles de Croisset (a)
Chairman
Diego Della Valle (a) Michael Burke
(a)
Louis Vuitton Marie-Josée Kravis (a)
Clara Gaymard
Chantal Gaemperle Yves-Thibault de Silguy (a)
Iris Knobloch (a)
Human Resources and Synergies
Marie-Josée Kravis (a)
Jean-Jacques Guiony
Lord Powell of Bayswater Finance Ethics and Sustainable
Development Committee
Marie-Laure Sauty de Chalon (a) Christopher de Lapuente
Sephora and Beauty
Yves-Thibault de Silguy (a)
Yves-Thibault de Silguy (a)
Philippe Schaus
Hubert Védrine (a) Chairman
Wines & Spirits
Delphine Arnault
Sidney Toledano
Advisory Board members
Fashion Group Marie-Laure Sauty de Chalon (a)
Yann Arthus-Bertrand Jean-Baptiste Voisin Hubert Védrine (a)
Strategy
Paolo Bulgari
General Secretary Statutory Auditors
Marc-Antoine Jamet
ERNST & YOUNG Audit
represented by Gilles Cohen
and Patrick Vincent-Genod
MAZARS
represented by Isabelle Sapet
and Loïc Wallaert
(a) Independent Director.
Interim Financial Report - Six-month period ended June 30, 2019 1

FINANCIAL HIGHLIGHTS
Revenue
Change in revenue by business group June 30, 2019 June 30, 2018 Change
(EUR millions)
(EUR millions and percentage)
Published Organic (a)
46,826
42,636 Wines & Spirits 2,486 2,271 +9 % +6 %
Fashion & Leather Goods 10,425 8,594 +21% +18%
Perfumes & Cosmetics 3,236 2,877 +12% +9%
As of June 30
25,082 Watches & Jewelry 2,135 1,978 +8% +4%
21,750 Selective Retailing 7,098 6,325 +12% +8%
19,714
Other activities and eliminations (298) (295) - -
Total 25,082 21,750 +15% +12%
(a) On a constant consolidation scope and currency basis. The net impact of exchange rate fluctuations on Group revenue was +3%
and the net impact of changes in the scope of consolidation was nil. The principles used to determine the net impact of exchange
2017 2018 2019 rate fluctuations on the revenue of entities reporting in foreign currencies and the net impact of changes in the scope of
consolidation are described on page 9.
Revenue by geographic region of delivery Revenue by invoicing currency

France 9%
Euro 21%
Europe (excl. France) 17%
US dollar 29%
United States 23%
Japan 7% Japanese yen 7%
Asia (excl. Japan) 33% Hong Kong dollar 6%
Other markets 11% Other currencies 37%

Profit from recurring
operations
(EUR millions)
10,003 Profit from recurring operations by business group June 30, Dec. 31, June 30,
(EUR millions) 2019 2018 (1) 2018 (1)
8,293
Wines & Spirits 772 1,629 726
As of June 30 Fashion & Leather Goods 3,248 5,943 2,775
5,295 Perfumes & Cosmetics 387 676 364
4,648
Watches & Jewelry 357 703 342
3,640
Selective Retailing 714 1,382 612
Other activities and eliminations (183) (330) (171)
Total 5,295 10,003 4,648

(1) (1)
2017 2018 2019
Stores Stores by geographic region

(number) (number as of June 30, 2019)
1,163
Europe (a)
4,699
4,416
4,592 1,341
Asia (b)
792 522
United States
France
420
Japan
06/30/18 12/31/18 06/30/19 461

Other markets
(a) Excluding France. (b) Excluding Japan.
2 Interim Financial Report - Six-month period ended June 30, 2019

Basic Group share of net
Net profit Net profit, Group share earnings per share
(EUR millions) (EUR millions) (EUR)
6,990 6,354 12.64
3,292 3,605 3,004 3,268 5.97 6.49
06/30/18 (1) 12/31/18 (1) 06/30/19 06/30/18 (1) 12/31/18 (1) 06/30/19 06/30/18 (1) 12/31/18 (1) 06/30/19
Net cash from Operating free

operating activities Operating investments cash flow (a)
(EUR millions) (EUR millions) (EUR millions)
8,490 3,038 5,452
4,189 1,423
3,161 1,204 1,957 1,695
06/30/18 (1) 12/31/18 (1) 06/30/19 06/30/18 12/31/18 06/30/19 06/30/18 (1) 12/31/18 (1) 06/30/19
(a) See the consolidated cash flow
statement on p. 26 for the definition
of operating free cash flow.
Equity and Net financial

Dividend per share (a) Net financial debt (a) debt/Equity ratio (a)
(EUR) (EUR millions) (EUR millions and percentage)
6.00 8,684 33,957 35,390

5.00 7,359 31,482
5,487 (b)
Interim
2.20 (b)
2.00
1.60 24.5%
23.4%
16.2%
2017 2018 2019 06/30/18 (1) 12/31/18 (1) 06/30/19 06/30/18 (1) 12/31/18 (1) 06/30/19
(a) Gross amount paid for fiscal year, (a) Excluding “Lease liabilities” and “Purchase (a) In 2018, excluding the acquisition of
excluding the impact of tax regulations commitments for minority interests”. See Note 19.1 Belmond shares. See Note 18.1 to the
applicable to the recipient. to the condensed consolidated financial 2018 consolidated financial statements.
(b) Payable on December 10, 2019. statements for definition of net financial debt.
(b) Excluding the acquisition of Belmond shares.
See Note 18.1 to the 2018 consolidated financial
statements.
(1) The 2017 and 2018 financial statements have not been restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed consolidated financial statements
regarding the impact of the application of IFRS 16.

HIGHLIGHTS
Highlights of the first half of 2019 include: • good progress in jewelry, in particular for Bvlgari;
• further double-digit increases in revenue and profit from • Sephora's strong revenue growth in stores and online;
recurring operations;
• solid progress of DFS, particularly in Europe, benefiting from
• strong growth in Asia, the United States and Europe, particularly the rise in international travelers;
in France, which saw a rebound in the second quarter;
• the completion in April of the acquisition of the Belmond
• good start to the year for Wines & Spirits; hotel group, whose activity will be consolidated in the third
quarter of 2019;
• remarkable momentum at Louis Vuitton where profitability
remains at an exceptional level; • announcement of the agreement with Stella McCartney House;
• remarkable performance of Christian Dior Couture; • operating free cash flow of 1.7 billion euros;
• rapid progress of LVMH’s perfumes & cosmetics flagship brands; • net debt to equity ratio (“gearing”) of 24.5% as at the end of
June 2019.
SHARE CAPITAL AND VOTING RIGHTS
Number Number of % of capital % of voting

of shares voting rights (a) rights
Arnault Family Group 238,393,953 465,628,350 47.17% 63.32%

Other 267,037,332 269,767,103 52.83% 36.68%
Total 505,431,285 735,395,453 100.00% 100.00%
(a) Total number of voting rights that may be exercised at Shareholders’ Meetings.

BUSINESS REVIEW AND COMMENTS
ON THE HALF-YEAR CONSOLIDATED
FINANCIAL STATEMENTS
OF LVMH GROUP
1. COMMENTS ON THE CONSOLIDATED INCOME STATEMENT 6

2. WINES & SPIRITS 10
3. FASHION & LEATHER GOODS 11
4. PERFUMES & COSMETICS 13
5. WATCHES & JEWELRY 14
6. SELECTIVE RETAILING 15
7. COMMENTS ON THE CONSOLIDATED BALANCE SHEET 16
8. COMMENTS ON THE CONSOLIDATED CASH FLOW STATEMENT 18

BUSINESS REVIEW AND COMMENTS ON THE HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS OF LVMH GROUP
Comments on the consolidated income statement
1. COMMENTS ON THE CONSOLIDATED INCOME STATEMENT

1.1 Analysis of revenue
Change in revenue per quarter Revenue by geographic region of delivery

(EUR millions and percentage)
(as %) June 30, Dec. 31, June 30,
12,538 2019 2018 2018
16% 12,544 25,082
15% 15% France 9 10 9
Europe (excl. France) 17 19 18
United States 23 24 23
11% Japan 7 7 7
12% 12% Asia (excl. Japan) 33 29 31
Other markets 11 11 12
Total 100 100 100

–
– –
5% By geographic region of delivery and compared to June 30,
3% 3%
2018, the relative contributions of Europe (excluding France)
and “Other markets” to Group revenue fell by 1 point to 17%
1st quarter 2nd quarter 1st half-year and 11%, respectively. The contribution of Asia (excluding Japan)
rose 2 points to 33%, while the relative contributions of France,
Organic growth
the United States and Japan remained stable at 9%, 23% and 7%,
Changes in the scope of consolidation (a) respectively.
Exchange rate fluctuations (a)
(a) The principles used to determine the net impact of exchange rate fluctuations on Revenue by business group
the revenue of entities reporting in foreign currencies and the net impact of
changes in the scope of consolidation are described on page 9.
(EUR millions) June 30, Dec. 31, June 30,
2019 2018 2018
Consolidated revenue for the period ended June 30, 2019
was 25,082 million euros, up 15% from the first half of 2018. Wines & Spirits 2,486 5,143 2,271
The Group’s main invoicing currencies strengthened against Fashion & Leather Goods 10,425 18,455 8,594
the euro – in particular the US dollar, which rose 7% – boosting Perfumes & Cosmetics 3,236 6,092 2,877
revenue growth. Watches & Jewelry 2,135 4,123 1,978
Selective Retailing 7,098 13,646 6,325
No changes to the Group’s consolidation scope have occurred
Other activities and eliminations (298) (633) (295)
since January 1, 2018.
Total 25,082 46,826 21,750
On a constant consolidation scope and currency basis, revenue
increased by 12%.
By business group, the breakdown of Group revenue changed
more appreciably. The contribution of Fashion & Leather Goods
Revenue by invoicing currency
rose 2 points to 42%, while the contributions of Watches &
Jewelry and Selective Retailing decreased by 1 point each to 8%
(as %) June 30, Dec. 31, June 30,
2019 2018 2018 and 28%, respectively. The contributions of Perfumes & Cosmetics
and Wines & Spirits remained stable at 13% and 10%, respectively.
Euro 21 22 22
Revenue for Wines & Spirits increased by 9% based on published
US dollar 29 29 29
figures. Boosted by a positive exchange rate impact of 3 points,
Japanese yen 7 7 7
revenue for this business group increased by 6% on a constant
Hong Kong dollar 6 6 6
consolidation scope and currency basis. Champagne and wines
Other currencies 37 36 36
achieved growth of 6% based on published figures and 5% on
Total 100 100 100 a constant consolidation scope and currency basis, while cognac
and spirits grew by 12% based on published figures and 7%
The breakdown of revenue by invoicing currency changed very on a constant consolidation scope and currency basis. This
little with respect to the first half of 2018: the contribution of performance was largely driven by higher prices as well as an
the euro fell by 1 point, while that of “Other currencies” rose by increase in sales volumes. Demand remained very strong in the
1 point to 37%. The contributions of the US dollar, the Japanese United States and in Asia, particularly China, which reaffirmed
yen and the Hong Kong dollar remained stable at 29%, 7% its status as the second-largest market for the Wines & Spirits
and 6%, respectively. business group.

Fashion & Leather Goods posted organic growth of 18%, equating Revenue for Watches & Jewelry increased by 4% on a constant
to 21% based on published figures. This business group’s consolidation scope and currency basis, and by 8% based on
performance was driven by the very solid momentum achieved published figures. The business group was boosted by strong
by Louis Vuitton and Christian Dior Couture, as well as by Loewe, momentum at Bvlgari, as well as solid performance at Hublot
Rimowa, Berluti, Fendi and Loro Piana, which confirmed their and Chaumet. TAG Heuer continued its repositioning. Asia and
potential for strong growth. Japan were the most buoyant regions.
Revenue for Perfumes & Cosmetics increased by 9% on a constant Revenue for Selective Retailing increased by 8% on a constant
consolidation scope and currency basis, and by 12% based on consolidation scope and currency basis, and by 12% based on
published figures. This performance confirmed the effectiveness published figures. The business group’s performance was driven
of the value-enhancing strategy resolutely pursued by the Group’s by Sephora, which saw appreciable growth in revenue, and by
brands in the face of competitive pressures. The Perfumes & DFS, which recorded very strong growth, particularly in Hong
Cosmetics business group saw significant revenue growth in Asia, Kong and Macao, as well as in Venice.
particularly in China.
1.2 Profit from recurring operations
The geographic breakdown of stores is as follows:

2019 2018 (1) 2018 (1)
(number) June 30, Dec. 31, June 30,
Revenue 25,082 46,826 21,750 2019 2018 2018
Cost of sales (8,447) (15,625) (7,130)
France 522 514 514
Gross margin 16,635 31,201 14,620 Europe (excl. France) 1,163 1,153 1,132
Marketing and selling expenses (9,563) (17,755) (8,305)
Japan 420 422 414
General and administrative expenses (1,789) (3,466) (1,679)
Asia (excl. Japan) 1,341 1,289 1,195
Income/(loss) from joint ventures
and associates 12 23 12
Total 4,699 4,592 4,416
Profit from recurring operations 5,295 10,003 4,648
Operating margin (%) 21.1 21.4 21.4
General and administrative expenses totaled 1,789 million euros,
up 7% based on published figures and up 5% on a constant
IFRS 16 Leases was applied as of January 1, 2019. In accordance
consolidation scope and currency basis. They amounted to 7%
with the standard, data for fiscal year 2018 was not restated.
of revenue, down 0.6 points relative to the first half of 2018.
The Group achieved a gross margin of 16,635 million euros,
up 14% from the first half of 2018. As a percentage of revenue, Profit from recurring operations by business group
the gross margin was 66%, 0.9 points lower than in the first half
of 2018. (EUR millions) June 30, Dec. 31, June 30,
2019 2018 (1) 2018 (1)
Marketing and selling expenses totaled 9,563 million euros, up
15% based on published figures and up 12% on a constant Wines & Spirits 772 1,629 726
consolidation scope and currency basis. This increase was mainly Fashion & Leather Goods 3,248 5,943 2,775
due to the development of retail networks but also to higher Perfumes & Cosmetics 387 676 364
communications investments, especially in Perfumes & Cosmetics. Watches & Jewelry 357 703 342
The level of these expenses expressed as a percentage of revenue Selective Retailing 714 1,382 612
remained stable at 38%. Among these marketing and selling Other activities and eliminations (183) (330) (171)
expenses, advertising and promotion costs amounted to 12% of
Total 5,295 10,003 4,648
revenue, increasing by 14% on a constant consolidation scope
and currency basis.
The Group’s profit from recurring operations was 5,295 million
euros, up 14%. Restated for the positive 77 million euro impact
of the initial application of IFRS 16, this increase amounted to
12%. The Group’s operating margin as a percentage of revenue
was 21.1%, down 0.3 points from the first half of 2018
(1) The financial statements as of December 31 and June 30, 2018 have not been restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed half-year
consolidated financial statements regarding the impact of the application of IFRS 16.

Change in profit from recurring operations Fashion & Leather Goods

(EUR millions)
June 30, Dec. 31, June 30,
(a)
Changes in (a) Exchange 2019 2018 (1) 2018 (1)
Organic the scope of rate
growth consolidation fluctuations Revenue (EUR millions) 10,425 18,455 8,594
+644 – +3 5,295 Profit from recurring operations
(EUR millions) 3,248 5,943 2,775
4,648
Fashion & Leather Goods posted profit from recurring operations
of 3,248 million euros, up 17% compared to the first half of
2018, and up 16% restated for the positive impact of the initial
application of IFRS 16. Louis Vuitton maintained its exceptional
level of profitability while continuing its robust investment
policy, Christian Dior Couture achieved a record performance,
1st half-year 1st half-year
2018 2019 and Loewe and Rimowa confirmed their growth momentum.
(a) The principles used to determine the impact of exchange rate fluctuations on the The other fashion brands continued to strengthen. The business
profit from recurring operations of entities reporting in foreign currencies and the group’s operating margin as a percentage of revenue fell by
impact of changes in the scope of consolidation are described on page 9. 1.1 points to 31.2%.
Exchange rate fluctuations had a positive overall impact of
Perfumes & Cosmetics
3 million euros on profit from recurring operations compared
to the first half of 2018. This total comprises the following three
items: the impact of exchange rate fluctuations on export and 2019 2018 (1) 2018 (1)
import sales and purchases by Group companies, the change in
the net impact of the Group’s policy of hedging its commercial Revenue (EUR millions) 3,236 6,092 2,877
exposure to various currencies, and the impact of exchange rate Profit from recurring operations
fluctuations on the consolidation of profit from recurring (EUR millions) 387 676 364
operations of subsidiaries outside the eurozone. Operating margin (%) 12.0 11.1 12.7
On a constant consolidation scope and currency basis, the

Profit from recurring operations for Perfumes & Cosmetics was
Group’s profit from recurring operations increased by 14%, and
387 million euros, up 6% compared to the first half of 2018.
by 12% restated for the positive 77 million euro impact of the
This growth was driven by Parfums Christian Dior, Guerlain
initial application of IFRS 16.
and Parfums Givenchy, which posted improved results thanks
to the success of their flagship product lines and strong
Wines & Spirits
innovative momentum. The business group’s operating margin
as a percentage of revenue fell by 0.7 points to 12.0%.
2019 2018 (1) 2018 (1)
Watches & Jewelry
Revenue (EUR millions) 2,486 5,143 2,271
Profit from recurring operations June 30, Dec. 31, June 30,
(EUR millions) 772 1,629 726 2019 2018 (1) 2018 (1)
Profit from recurring operations
Profit from recurring operations for Wines & Spirits was 772 million
(EUR millions) 357 703 342
euros, up 6% relative to the first half of 2018. Champagne and
wines contributed 214 million euros, while cognacs and spirits
accounted for 558 million euros. This performance was the
Profit from recurring operations for Watches & Jewelry was
result of both sales volume growth and a robust price increase
357 million euros, up 4.5% relative to the first half of 2018, and
policy. The operating margin as a percentage of revenue for
up 3% restated for the positive impact of the initial application
this business group decreased by 0.9 points to 31.1%.
of IFRS 16. This increase was the result of strong performance
at Bvlgari and Hublot. The operating margin as a percentage
of revenue for the Watches & Jewelry business group fell by
0.6 points to 16.7%.

Selective Retailing up 9% restated for the positive impact of the initial application
of IFRS 16. This performance was driven by DFS, which improved
June 30, Dec. 31, June 30, its profitability. The business group’s operating margin as a
2019 2018 (1) 2018 (1) percentage of revenue grew by 0.4 points to 10.1%.
Other activities
Profit from recurring operations
(EUR millions) 714 1,382 612 The result from recurring operations of “Other activities and
Operating margin (%) 10.1 10.1 9.7 eliminations” was a loss of 183 million euros, weakening with respect
to the first half of 2018. In addition to headquarters expenses,
Profit from recurring operations for Selective Retailing was this heading includes the results of the Media division, Royal
714 million euros, up 17% compared to the first half of 2018, and Van Lent yachts, and the Group’s hotel and real estate activities.
1.3 Other income statement items
- interest on lease liabilities recognized as part of the initial

2019 2018 (1) 2018 (1) application of IFRS 16, which amounted to an expense of
145 million euros;
Profit from recurring operations 5,295 10,003 4,648
- other financial income and expenses, which amounted to a
Other operating income and expenses (54) (126) (70)
net expense of 9 million euros, compared to net income of
Operating profit 5,241 9,877 4,578 34 million euros in the first half of 2018. The expense related
to the cost of foreign exchange derivatives was 102 million
Net financial income/(expense) (205) (388) (22)
euros, versus an expense of 68 million euros a year earlier.
Income taxes (1,431) (2,499) (1,264)
Lastly, other income from financial instruments, which mainly
Net profit before minority interests 3,605 6,990 3,292 arose from the change in the market value of available for sale
financial assets, amounted to net income of 93 million euros,
Minority interests (337) (636) (288)
compared to 102 million euros as of June 30, 2018.
Net profit, Group share 3,268 6,354 3,004
The Group’s effective tax rate was 28%, remaining stable compared
“Other operating income and expenses” amounted to a net expense to the first half of 2018.
of 54 million euros, compared with a net expense of 70 million
Profit attributable to minority interests was 337 million euros,
euros in the first half of 2018. As of June 30, 2019, “Other
compared to 288 million euros in the first half of 2018; this
operating income and expenses” included 37 million euros in
total mainly includes profit attributable to minority interests
amortization and impairment charges for brands and goodwill.
in Moët Hennessy and DFS.
The Group’s operating profit was 5,241 million euros, up 14%
The Group’s share of net profit was 3,268 million euros, compared
compared to the period ended June 30, 2018.
to 3,004 million euros in the first half of 2018. This represented
The net financial expense for the period ended June 30, 2019 13% of revenue in the first half of 2019, compared to 14% for
was 205 million euros, compared with a net financial expense the first half of 2018. The Group’s share of net profit in the first
of 22 million euros as of June 30, 2018. This item comprised: half of 2019 was up 9% compared to the first half of 2018.
- the aggregate cost of net financial debt, which totaled 51 million
euros, versus a cost of 56 million euros in the first half of 2018,
representing a reduction of 5 million euros;
Comments on the determination of the impact of exchange rate fluctuations and changes in the scope of consolidation
The impact of exchange rate fluctuations is determined by translating the financial statements for the fiscal year of entities with a functional currency other than the euro at the prior
fiscal year’s exchange rates, without any other restatements.
The impact of changes in the scope of consolidation is determined as follows:
- for the fiscal year’s acquisitions, by deducting from revenue for the fiscal year the amount of revenue generated during that fiscal year by the acquired entities, as of their initial
consolidation;
- for the prior fiscal year’s acquisitions, by deducting from revenue for the fiscal year the amount of revenue generated over the months during which the acquired entities were not
consolidated in the prior fiscal year;
- for the fiscal year’s disposals, by adding to revenue for the fiscal year the amount of revenue generated by the divested entities in the prior fiscal year over the months during which
those entities were no longer consolidated in the current fiscal year;
- for the prior fiscal year’s disposals, by adding to revenue for the fiscal year the amount of revenue generated in the prior fiscal year by the divested entities.
Profit from recurring operations is restated in accordance with the same principles.

Wines & Spirits
2. WINES & SPIRITS

achieved strong growth, confirming the power of its value-
2019 2018 2018 enhancing strategy. The launches of Vintage 2008, Vintage
Rosé 2006 and a limited edition designed by Lenny Kravitz
Revenue (EUR millions) 2,486 5,143 2,271 were extremely well received. Veuve Clicquot was buoyed by
Of which: Champagne and wines 960 2,369 903 the momentum of Carte Jaune and its blended Rosé. La Grande
Cognac and spirits 1,526 2,774 1,368 Dame 2008, its exceptional cuvée unveiled worldwide this year,
received a promising reception. The Maison ramped up its
Sales volume (millions of bottles)
initiatives to empower women entrepreneurs. Ruinart maintained
Champagne 24.4 64.9 24.8
its strong growth, driven by markets in Europe and the United
Cognac 50.4 93.3 46.9
States. Through its collaboration with Brazilian artist Vik Muniz,
Other spirits 8.7 19.1 8.8
the Maison once again illustrated its support for contemporary
Still and sparkling wines 15.3 38.5 15.3
art and its love of nature. Krug kept up its innovative momentum
Revenue by geographic region with the introduction of its Krug Grande Cuvée 167e Édition and
of delivery (%) Krug Rosé 23e Édition. The “Krug and the Single Ingredient” series
France 4 6 5 was once again a great success.
Estates & Wines won a number of awards, reinforcing its wines’
reputation for excellence. Breaking new ground in the world
Japan 6 6 6
of wine, Chandon launched Chandon Apéritif in Argentina,
Asia (excl. Japan) 27 23 27
a highly innovative product in its category. The acquisition of
Château du Galoupet, which holds the acclaimed Cru Classé
Total 100 100 100 des Côtes-de-Provence designation, marked Moët Hennessy’s
debut in the promising category of high-end rosé.
Profit from recurring operations (1)
Organic revenue growth for cognac was 8%, with sales volumes
(EUR millions) 772 1,629 726
up 8%. Hennessy’s solid performance during the period added
to its successful track record in recent years, in particular 2018,
Operating investments when the Maison became the world’s leading premium spirits
of the period (EUR millions) 112 298 108 brand. Its V.S and V.S.O.P ranges of cognac were the main growth
drivers in the first half of the year. The Maison enjoyed strong
(1) The financial statements as of December 31 and June 30, 2018 have not been
restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed momentum in its key markets (the United States, China and
consolidated financial statements regarding the impact of the application of travel retail), as well as a surge in emerging markets (including
IFRS 16.
Africa and the Caribbean), where it made further inroads. While
continuing to grow, Hennessy ramped up its investments to maintain
Highlights its high level of quality and spur its innovative momentum,
illustrated in particular by James Hennessy, X.X.O and the new
The Wines & Spirits business group delivered a strong performance. marketing campaign for X.O directed by Sir Ridley Scott.
Leveraging its high-quality brand portfolio, it continued to
Boosted by growing demand for high-quality products,
pursue its value-enhancing strategy and consolidated its leading
Glenmorangie and Ardbeg whiskies solidified their positioning
position in the prestige products segment, drawing on innovation
in prestigious award-winning single malts.
and robust marketing investments. The business group saw
strong momentum, particularly in the United States, Asia and Belvedere vodka continued its global expansion and differentiated
emerging markets. itself in the United States with Single Estate Rye. The Polish distillery
worked on an ambitious green energy plan.
Organic revenue growth was 5% while sales volumes were
down 1%. The increased value was driven by more rapid growth Clos 19 strengthened its position as an innovative e-commerce
in prestige cuvées and a firm price increase policy. Moët & platform and continued its expansion in the United States.
Chandon gained further ground in its main markets and
Woodinville Whiskey Company continued its development
celebrated the 150th anniversary of its iconic Moët Impérial cuvée
in a number of US states.
with a very special event at its historic estate, the Château de
Saran. The Maison obtained two sustainable winegrowing Volcán De Mi Tierra tequila recorded very solid growth in
certifications for its environmental approach. Dom Pérignon North America.

Fashion & Leather Goods
Outlook of resonating with new lifestyles and winning over the next
generation of consumers. Backed by a powerful network and
Resolutely pursuing its value-enhancing strategy, the Wines engaged retail staff, over the months ahead the Wines & Spirits
& Spirits business group will continue to draw on excellence Maisons will continue to invest heavily in enhancing the appeal
and innovation to strengthen its positions in an uncertain of their brands and increasing their production capacity, while
sales environment, where demand remains squarely focused on maintaining an active, quality-driven sourcing policy. Remaining
quality. The diverse range of customer experience the business true to their long-term vision, they will step up their pioneering
group has built up, thanks to the strength of its creative, high- environmental and social initiatives, and explore innovative
quality product portfolio, will help its brands meet their goal solutions alongside their different partners and stakeholders.
3. FASHION & LEATHER GOODS

Highlights
2019 2018 2018
Louis Vuitton’s exceptional momentum was driven by its
Revenue (EUR millions) 10,425 18,455 8,594 creativity, which was ever more impactful and innovative across
all its product categories. The half-year period featured a wealth
Revenue by geographic region
of developments, with revenue growth well balanced between
of delivery (%)
emblematic lines and new creations. Following the lineage of
France 8 9 9
previous collaborations, the Artycapucines leather goods collection
brought together Capucines models designed by six artists
together with the Maison’s workshops. The Monogram Giant
Japan 11 11 11
capsule collection featured an oversized version of the Maison’s
signature Monogram print, while Horizon Soft, the latest range of
Other markets 9 8 8
luggage designed by Marc Newson, was even lighter and more
Total 100 100 100 convenient than its predecessors. On the marketing front,
Capucines, Twist and Dauphine – the Maison’s “New Classics” –
Type of revenue as a percentage
were proudly brandished by muses Emma Stone, Alicia Vikander
of total revenue (excluding Louis
and Léa Seydoux. The 2020 Cruise ready-to-wear collection
Vuitton and Christian Dior Couture)
– designed by Nicolas Ghesquière as a fashion dialogue between
Retail 68 67 64
New York and Paris – had its runway show debut at the TWA
Wholesale 31 32 35
Flight Center at JFK Airport. Louis Vuitton took the occasion
Licenses 1 1 1
to unveil the prototype for an ultra-innovative canvas that can
Total 100 100 100 display moving images on the bags that feature this material.
Virgil Abloh, Creative Director of Menswear, launched a new
Profit from recurring operations (1) product line, Louis Vuitton Staples Edition, which revisits men’s
(EUR millions) 3,248 5,943 2,775 wardrobe essentials. Other half-year highlights for the business
Operating margin (%) 31.2 32.2 32.3 group included the new B Blossom jewelry collection, an
extension of the Tambour watch range and three new fragrances
Operating investments
inspired by the Californian summer. The quality-focused
of the period (EUR millions) 544 827 325
transformation of its store network continued, with emblematic
Number of stores 1,902 1,852 1,772 locations reopening in Florence, London (Sloane Street),
Monaco and Shanghai (IFC). The Maison continued to reinforce
restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed its production capacity, with the opening of a new leather
consolidated financial statements regarding the impact of the application of goods workshop that has received the “BREEAM Very Good”
IFRS 16.
envionmental certification, in the Maine-et-Loire department
of western France at the beginning of the year. Its website for
online sales in Europe was recently launched and is available
in seven European countries. Louis Vuitton launched its first
e-commerce website in France in 2005 and has since extended
it to 19 other countries worldwide.

Fashion & Leather Goods
Christian Dior Couture turned in an exceptional performance Kenzo continued to reinforce its retail presence with a new
in all its product categories and all its regions. Runway shows store in New York and those that became directly operated in
reflected the Maison’s remarkable creativity: at the Champ de China at the end of 2018. In June, Fashion Week was an occasion
Mars, the choreography of Kim Jones’ Menswear collection to celebrate the remarkable growth achieved under the creative
evoked the tableaux vivants (living pictures) of the past century; directorship of Humberto Leon and Carol Lim who, after eight
Maria Grazia Chiuri’s Haute Couture collection was unveiled in years at Kenzo, decided to focus on their own label, Opening
a dreamlike circus-inspired show under a grand tent at the Ceremony. Felipe Oliveira Baptista joined Kenzo as its new
Musée Rodin; a tribute to diversity, the 2020 Cruise show was Creative Director.
held at El Badi Palace in Marrakesh, mixing African and European
Berluti enjoyed excellent momentum, driven by Japan and
cultures and expertise. In leather goods, the new 30 Montaigne
China in particular. Kris Van Assche’s first ready-to-wear shows
line – named after the Maison’s historic address – perfectly
were very well received. New collections which arrived in stores
illustrates its timeless elegance and expertise, while for the third
impressed and expanded the brand’s clientele. Its retail network
edition of the Dior Lady Art project, eleven women artists were
continued its selective development.
given carte blanche to express their vision of the iconic Lady
Dior. After Paris and Denver, a new exhibition touched down in Rimowa extended its store network and unveiled new brand
London at the Victoria and Albert Museum, and in Dallas. ambassadors for its global marketing campaign. The half-year’s
highlights included three collaborations on limited editions,
Fendi enjoyed excellent momentum, with especially robust
with Bang & Olufsen and artists Daniel Arsham and Alex Israel,
growth among its emblematic products such as the Baguette line,
as well as the launch of new colors for luggage in the Essential
which saw very strong demand. As part of the expansion of its
line. The first capsule collection produced as a collaboration
store network, the Maison inaugurated its first location in Monaco.
between Rimowa and Dior Homme was also revealed.
The main highlight of the half-year was the last runway show
of Karl Lagerfeld, after 54 years of shared history with the brand Designer Marc Jacobs successfully launched the new line
and the Fendi family. An exceptional show featuring both men’s called The Marc Jacobs for his eponymous brand, offering
and women’s collections at the Powerlong Museum in Shanghai contemporary wardrobe essentials.
and a ceremony at the Grand Palais in Paris paid homage to the
Continuing the relationship between LVMH and Rihanna, in
legendary fashion designer. The Couture show in Rome in early
May Fenty – the singer’s newly created fashion house – launched
July once again illustrated Fendi’s exceptional expertise through
its website and opened two pop-up stores in Paris and New York.
54 looks in honor of Lagerfeld’s years with the Maison.
Patou was acquired by LVMH and welcomed Guillaume Henry
Loro Piana’s growth was driven by the vitality of its iconic ranges
as Creative Director to relaunch its women’s ready-to-wear.
as well as its “Excellences” lines, such as The Gift of Kings, which
won over customers with its unrivalled lightness, and its vicuña
wool collection. Footwear also turned in a strong performance, Outlook
boosted by the launch of a personalized service and the opening
of a pop-up store in New York’s Meatpacking District. Staying true to its blend of creative momentum, spirit of innovation
and unique wealth of artisanal expertise, Louis Vuitton will
Hedi Slimane’s first ready-to-wear collections for Celine
continue to enrich its fascinating universe and craft the most
were launched in stores in March. The Maison simultaneously
beautiful experiences for its customers. The months ahead will
inaugurated its new store concept, which it plans to roll out
see high-impact initiatives across all its product categories and
progressively. The runway shows held in the first half of the
the launch of plans for flagship stores. Campaigns and events
year, which were very well received, reflected the Maison’s new
closely interwoven with Louis Vuitton’s business highlights will
identity.
support upcoming developments. Christian Dior’s core values
For Givenchy, the half-year’s main highlights were the launch of innovation and excellence will continue to expand its
of its new Mystic leather goods line and regaining direct control reach and guide its strong growth. An exceptional concept store
of its distribution in South Korea. The Maison presented on the Champs-Élysées in Paris will temporarily take over from
its first menswear collection designed by Clare Waight Keller, the Maison’s historic 30 avenue Montaigne location, which is
in the maze-like gardens of Villa Palmieri in Florence, Italy. undergoing a major transformation. Fendi will continue to
expand its collections as well as its partnerships with the world
Under the leadership of Creative Director Jonathan Anderson,
of art and music. All of the Maisons will maintain their focus on
Loewe recorded remarkable growth in all its markets, driven in
creativity in their collections, achieving excellence in retail and
particular by the commercial and media success of ready-to-
the customer experience, and strengthening their digital
wear and new handbags, including its Gate model. A series of
strategy.
events raised the Maison’s profile and accompanied the launch
of its capsule collections, a limited edition inspired by Dumbo,
Paula’s Ibiza women’s collection and the Eye/Loewe/Nature men’s
collection.

Perfumes & Cosmetics
4. PERFUMES & COSMETICS

Dior Backstage range – drawing inspiration from products used
2019 2018 2018 by professional makeup artists backstage at runway shows –
should also be highlighted. Growth in skincare was driven
Revenue (EUR millions) 3,236 6,092 2,877 by the Asian markets and premium products. Dior Prestige, whose
core range continued to expand, saw strong growth in all regions
through its new Micro-Lotion de Rose, which joins Micro-Huile
of delivery (%)
de Rose.
France 9 11 11
Europe (excl. France) 19 22 21 Guerlain experienced remarkable growth, driven by its Abeille
United States 13 16 14 Royale and Orchidée Impériale skincare lines and by Rouge G and
Japan 5 5 5 its new Essentiel foundation in makeup. This momentum was
Asia (excl. Japan) 43 35 37 particularly strong in China and in travel retail. With twelve years
Other markets 11 11 12 of environmental and social commitments in fields as varied as
biodiversity, sustainable design, climate change and social
Total 100 100 100
inclusion, Guerlain became the first cosmetics Maison to launch
a transparency and traceability platform, Bee Respect, providing
a behind-the-scenes look at the life-cycle of its creations. In May,
(EUR millions) 387 676 364
it held the third edition of the Bee University program at
UNESCO, assembling leading experts to identify concrete
Operating investments solutions to aid bee conservation.
of the period (EUR millions) 171 330 135
Parfums Givenchy recorded strong growth once again. Makeup
Number of stores 376 354 316 enjoyed increased success in Asia, particularly in China. Growth
accelerated in Europe and the rest of the world, thanks to the
restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed success of its fragrance L’Interdit.
consolidated financial statements regarding the impact of the application of
IFRS 16. At Kenzo Parfums, the momentum at Flower by Kenzo was buoyed
by a new version of its Flower by Kenzo Eau de Vie fragrance.
Fenty Beauty by Rihanna reaped the benefits of a very extensive
Highlights
innovation plan. It reaffirmed its success in new categories,
including a lineup of concealers available in 50 different shades,
The prestige and appeal of its Perfumes & Cosmetics Maisons,
bronzers, setting powders and lip glosses, and also continued
the vitality of their iconic lines, the quality of their innovations,
its strong social media campaign. Benefit continued to develop
as well as robust investments in communication stimulated the
its eyebrow collection with its flagship Gimme Brow and Precisely
business group’s growth and market share gains. Makeup and
products and the expansion of its brow bars, particularly in
skincare were particularly dynamic and the market in Asia
China. Make Up For Ever launched a new long-lasting concealer
remained very buoyant.
within its highly popular Ultra-HD range. Fresh continued
Following a record year, Parfums Christian Dior continued its its robust growth in China and achieved a solid performance
remarkable performance thanks to the strength of its flagship in the American market, supported by its flagship Rose, Black Tea
lines. Beyond the early promise shown by Joy, the third best- and Lotus lines. Acqua di Parma relaunched its Barbiere line and
selling perfume worldwide, growth in the women’s portfolio offered a completely renewed range of scents and candles for
was boosted by the success of the new Miss Dior eau de toilette living spaces. The Maison’s completely renovated store in Milan
and the vitality of J’adore. Sauvage – which became the leading reopened its doors, while the first of its stores in China were
men’s fragrance in 2018 – maintained its remarkable performance. opened. Perfumes Loewe refreshed its visual identity and
Maison Christian Dior saw strong growth, with an exceptional communication strategy, with strong growth in Spain, its historical
collection of fragrances available in dedicated stores, confirming market. Maison Francis Kurkdjian launched its Gentle Fluidity
its potential, particularly in Asia. The Maison’s roots in Grasse, duo, comprising two very distinct fragrances derived from the
the perfume capital of the world, was central to each of its same ingredients. The Ole Henriksen skincare brand continued
fragrances and bolstered its international profile. Makeup in its growth in the United States as a result of a well-received
particular was boosted by the continued success of the Maison’s digital activation strategy on social media and interest generated
Rouge Dior lipstick, its Ultra-Rouge version and the new Dior Addict by its Banana Bright range.
Stellar Shine. The performance of its Forever foundation and the

Watches & Jewelry
Outlook will continue its expansion in the premium segment and will
be boosted by strong growth in the Asian market. At Guerlain,
In a highly competitive environment, the Perfumes & Cosmetics the second half of the year will be highlighted by robust activity
business group will leverage the complementarity of its brand in the perfume sector, including strong support for Mon Guerlain
portfolio to consolidate its market share in 2019. Innovation, with a new campaign embodied by Angelina Jolie, alongside
retail quality and communication investments, including digital, the continued international rollout of Aqua Allegoria and the
will remain the key priorities to achieving this ambition. development of the Guerlain Parfumeur boutique network.
Parfums Christian Dior will continue to showcase its iconic Parfums Givenchy will relaunch its emblematic couture-inspired
fragrances in conjunction with Couture and its roots in Grasse, lipstick Le Rouge and unveil a new version of the fragrance
while building a unique fragrance experience for its customers, L’Interdit. Kenzo Parfums will launch a new eau de parfum in its
particularly via the rollout of its Maison Christian Dior store Kenzo World range. Make Up For Ever will build on its renowned
concept. Makeup will be boosted by several innovations and a expertise in foundation with an innovative multi-purpose
strong digital activation that will showcase the Maison’s artful concept. Fenty Beauty by Rihanna will intensify its efforts to
color palette and the spirit of its runway shows. Dior skincare gain market share in Asia.
5. WATCHES & JEWELRY

Bvlgari continued its remarkable performance and gained market
2019 2018 2018 share with particular success in the jewelry segment. Growth
was driven by the contribution of its iconic Serpenti, B.Zero1,
Revenue (EUR millions) 2,135 4,123 1,978 Diva and Lvcea lines, as well as Fiorever, a new collection launched
in 2018, inspired by a floral theme incorporating diamonds.
The Maison celebrated the 20th anniversary of its B.Zero1 line
of delivery (%)
with an exhibition in Milan, along with the creation of special
France 5 6 5
series and new versions of rings and bracelets. A fourth edition
of the SerpentiForm exhibition was held in Chengdu, while the
United States 8 9 9
Wild Pop high jewelry collection, reflecting Bvlgari’s quintessential
Japan 12 12 12
expertise and spirit, was successively exhibited in London, Tokyo
and Hong Kong. An array of creations encapsulating the Maison’s
great watchmaking expertise were presented in Geneva and Basel,
Total 100 100 100 including the new Serpenti Seduttori, Octo Finissimo Chronograph
and Octo Finissimo Tourbillon Carbon, which set two new world
Profit from recurring operations (1) records with their exceptionally thin design and contemporary
(EUR millions) 357 703 342 elegance. Store openings and renovations continued in Monaco,
Operating margin (%) 16.7 17.1 17.3 alongside the installation of temporary stores at destinations
including the Champs-Élysées in Paris and Wynn Macau.
Operating investments
of the period (EUR millions) 142 303 145 TAG Heuer continued to focus on its flagship Carrera, Aquaracer
and Formula 1 lines, as it unveiled new models and special series.
Number of stores 440 428 413
While the Golf Edition rounded out its range of smartwatches,
(1) The financial statements as of December 31 and June 30, 2018 have not been the new Autavia collection marked the return of a legend,
restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed augmented with cutting-edge precision. TAG Heuer celebrated
IFRS 16. the 50th anniversary of its Monaco model with the launch of limited
editions.
Highlights Hublot continued its robust growth. This solid momentum was
driven by its emblematic Classic Fusion and Big Bang lines, and
Growth at the Watches & Jewelry Maisons was driven by the by the remarkable performance of Spirit of Big Bang, which made
strength of their iconic lines, the creativity of their new products the biggest contribution to sales growth. Each line featured
and increased brand awareness. The best performances were exceptional new models, such as the Classic Fusion Ferrari GT,
recorded in jewelry and by the business group’s networks of illustrating the Maison’s power of innovation. Its profile was
directly operated stores. raised by an intense program of communications campaigns

Selective Retailing
and events centered on sports and culture. Hublot continued to Outlook

improve the quality of its distribution and continued to develop
its store network, which is now its main source of growth. The Watches & Jewelry business group will maintain its target
Two stores were opened in May, at Rome’s Piazza di Spagna and of market share gains in 2019. This ambition will draw on the
in Monte Carlo. creativity and masterful expertise of the Maisons’ watchmakers
and jewelers, as well as the performance of their directly operated
At Zenith, in addition to its iconic Chronomaster, Elite and Pilot
stores. It will be coupled with an attentive approach to each specific
collections, the Defy line was enriched with new models and
market and carefully targeted resource allocation. Marketing
saw rapid growth. The Maison continued to consolidate its
investments will be robust, with a particular emphasis on digital
organization while leveraging synergies offered by the other
communications. Substantial resources will also be devoted to
watchmaking Maisons.
programs focused on distribution quality and productivity.
Chaumet’s growth was largely driven by the impressive success Bvlgari presented its new Cinemagia high jewelry collection in
of the Bee My Love collection, alongside the iconic Liens and Capri at the end of June, paying tribute to the Italian Maison’s
Joséphine lines, with particularly strong momentum in China, long-standing affinity with the silver screen. Also in June, a new
Japan and the Middle East. Its collections were enhanced exhibition entitled Bvlgari – The Story, The Dream opened at Castel
by new ring and bracelet additions to the Liens Evidence line as Sant’Angelo in Rome, celebrating Bvlgari and Italian fashion.
well as the new Boléro watch. Work began on the full renovation The expansion of Bvlgari’s store network will continue. Chaumet
of Chaumet’s historic location on the Place Vendôme in Paris. will open a flagship store at its 1881 Heritage site in Hong Kong,
A temporary store on Boulevard Saint-Germain hosted an as will Hublot. Zenith and Fred will increase their presence in
exhibition dedicated to flora and fauna, which are among the China with a new store in Beijing and Shanghai, respectively.
Maison’s major sources of inspiration. In January 2020, Bvlgari Resort Dubai will host the first exhibition
of LVMH’s Swiss watchmaking Maisons. This initiative will serve
Fred actively developed its Force 10 and 8°0 lines and launched
as a new platform to raise awareness of the Group’s brands, in
its new Ombre Féline collection.
addition to the Geneva and Basel watch trade shows, and will
strengthen its foothold in the watchmaking sector.
6. SELECTIVE RETAILING
Highlights
2019 2018 2018
Selective Retailing delivered organic revenue growth of 8%,
Revenue (EUR millions) 7,098 13,646 6,325 driven by the strong momentum of all of the business group’s
Maisons.
of delivery (%) Sephora recorded strong revenue growth, gaining new market
France 10 12 11 share in all the countries in which it operates, with a significant
Europe (excl. France) 9 9 9 acceleration in Asia and the Middle East. Its store network
United States 36 38 37 continued to expand. Online sales grew rapidly. With locations
Japan 2 2 2 in 34 countries and its digital presence in 29 markets, the Maison
Asia (excl. Japan) 30 27 29 capitalized on its omnichannel synergies to continually improve
Other markets 13 12 12 how it serves its customers and achieve its ambition of building
the world’s favorite beauty community. The renovation of its
Total 100 100 100
stores in La Défense in Paris, Dubai Mall and Times Square in
Manhattan, as well as the opening of magnificent flagship stores
at Hudson Yards (New York) and China World (Beijing) let
(EUR millions) 714 1,382 612
customers discover Sephora’s new concepts on every continent.
The “We Belong To Something Beautiful” marketing campaign
Operating investments in North America illustrated Sephora’s commitment to its
of the period (EUR millions) 276 537 205 inclusive core values so that everyone feels welcome in its stores.
With an ever-larger and more innovative selection of products,
Number of stores
Sephora cultivated the exclusivity of its offering. Its own Sephora
Sephora 1,910 1,886 1,840
Collection brand was very successful in attracting customers and
Other 53 54 57
building loyalty. The Good Skincare range launched in the first
(1) The financial statements as of December 31 and June 30, 2018 have not been half of the year was a great success.
restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed
IFRS 16.

Comments on the consolidated balance sheet
DFS continued to benefit from strong demand at long-haul Enjoying a dual presence on both banks of the Seine, La Grande
destinations in Oceania as well as Venice in Europe and its major Épicerie de Paris saw an increase in the number of visitors.
markets in Hong Kong and Macao, despite a slowdown observed The 24 Sèvres digital platform became 24S, a name that reflects
in recent months. The key shopping periods of Chinese New its increasingly international clientele.
Year and Golden Week were very successful. Through a logistics
agreement with Shenzhen Duty Free, DFS made its debut in
Outlook
the Chinese market. Several “mini-programs” for travelers were
launched on the WeChat social network and its online product
Sephora will continue to pursue its strategy, with ambitious
offering expanded rapidly. After appearances in Venice, Chengdu,
plans for geographic expansion and market share gains. It will
Beijing and Macao in 2018, DFS’s Masters of Time exhibition,
open its first stores in South Korea, Hong Kong and New
featuring a prestigious collection of watches and jewelry, opened
Zealand in the second half of the year. Sephora will continue
in Sydney and Hawaii.
to leverage innovation and its in-depth understanding of its
Starboard Cruise Services expanded its presence aboard new customers’ needs to offer them an ever more personalized
prestigious cruise ships following the expiration of contracts service throughout the world. Employee engagement, training
with certain cruise lines. It enriched its watches and jewelry and expertise will remain the key priorities to meet this objective
offering, notably by opening the largest Bvlgari store at sea. and guarantee customers an exceptional in-store and online
The careful attention paid to its different clientele segments was experience. In the second half of the year, DFS will benefit from
an integral part of its new store concepts, which offered unique, the completion of major renovations, including two flagship
personalized multisensory experiences tailored to each ship and T Gallerias in Hong Kong and Macao, as well as airport stores
destination. in San Francisco, Saipan, Okinawa and Cairns in Australia.
A fourth store will open in Hong Kong in the very lively Mong
Le Bon Marché continued its growth, driven by its unique
Kok district, while work will continue at the La Samaritaine site
product selection, beautiful architecture and top-quality service.
in Paris, in preparation for its grand opening planned for 2020.
The half-year period featured an exhibition by Portuguese artist
Le Bon Marché will continue to cultivate the exclusivity and
Joana Vasconcelos. Another highlight was the Geek mais Chic
quality of service upon which it has built its success. Transformations
event, a shopping experience for the third millennium, combining
will take place on the ground floor of the main store to welcome
digital innovation with immersive discovery and featuring more
a highly discerning clientele and ensure their utmost satisfaction.
than 80 fashion, beauty and decor brands. The Maison’s Salons
A punk-themed exhibition will be held in the fall. La Grande
Particuliers (private salons) opened at the beginning of June,
Épicerie de Paris will keep working to enhance its appeal and
accompanied by a personalized shopping and styling service.
build customer loyalty on both sides of the Seine.
7. COMMENTS ON THE CONSOLIDATED BALANCE SHEET

(EUR millions) June 30, Dec. 31, Change (EUR millions) June 30, Dec. 31, Change
2019 2018 (1) 2019 2018 (1)
Intangible assets 33,299 30,981 2,318 Equity 35,390 33,957 1,433

Property, plant and equipment 16,225 15,112 1,113 Long-term borrowings 5,588 6,005 (417)
Right-of-use assets 12,138 - 12,138 Non-current lease liabilities 10,139 - 10,139
Other non-current assets 5,156 4,656 500 Other non-current liabilities 18,759 17,505 1,254
Equity and non-current liabilities 69,876 57,467 12,409

Non-current assets 66,818 50,749 16,069
Short-term borrowings 7,890 5,027 2,863
Inventories 13,561 12,485 1,076
Current lease liabilities 2,029 - 2,029
Other current assets 10,545 11,066 (521)
Other current liabilities 11,129 11,806 (677)
Current assets 24,106 23,551 555 Current liabilities 21,048 16,833 4,215
Assets 90,924 74,300 16,624 Liabilities and equity 90,924 74,300 16,624
(1) The financial statements as of December 31, 2018 have not been restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed consolidated financial
statements regarding the impact of the application of IFRS 16.

Comments on the consolidated balance sheet
LVMH’s consolidated balance sheet as of end-June 2019 totaled Other non-current liabilities totaled 18.8 billion euros, up
90.9 billion euros, 16.6 billion euros higher than at year-end 1.3 billion euros from 17.5 billion euros as of December 31, 2018.
2018, including 12.1 billion euros related to the application of This growth was due, for 0.7 billion euros, to the increase in
IFRS 16 as of January 1, 2019, with right-of-use assets relating to liabilities in respect of purchase commitments for minority
leases with fixed lease payments recognized as assets in the balance interests and for 0.3 billion euros to the increase in the market
sheet, offset against lease liabilities which were recognized as value of derivatives, as well increases in provisions and other
liabilities in the balance sheet. See Note 1.2 to the condensed non-current liabilities and in deferred tax liabilities, for 0.2 billion
consolidated financial statements for details on the impact of euros and 0.1 billion euros, respectively.
the application of IFRS 16. Consequently, non-current assets
Lastly, other current liabilities decreased by 0.7 billion euros,
grew significantly by 16.1 billion euros and amounted to 73% of
amounting to 11.1 billion euros, mainly due to the decrease in
total assets, compared with 68% as of year-end 2018.
operating payables, linked to the seasonal nature of the Group’s
Intangible assets grew by 2.3 billion euros, of which 1.9 billion activities.
euros was due to the recognition of provisional goodwill on
Belmond, plus 0.7 billion euros due to the impact on goodwill Net financial debt and equity
of the revaluation of purchase commitments for minority interests.
Conversely, the application of IFRS 16 resulted in a decrease of (EUR millions or as %) June 30, Dec. 31, Change
0.4 billion euros in intangible assets, due to the reclassification 2019 2018 (1) (2)
of leasehold rights as right-of-use assets.
Long-term borrowings 5,588 6,005 (417)
Property, plant and equipment increased by 1.1 billion euros as Short-term borrowings
a result of the inclusion in the scope of consolidation of the and derivatives 8,010 5,157 2,853
property, plant and equipment appearing on Belmond’s balance
Gross borrowings
sheet at the acquisition date for 1.1 billion euros. Investments
after derivatives 13,598 11,162 2,436
for the half-year period, net of depreciation charges as well as
disposals, generated an increase of 0.3 billion euros; the comments Cash and cash equivalents (4,914) (5,675) 761
on the cash flow statement provide further information on
Net financial debt 8,684 5,487 3,197
investments. Lastly, the application of IFRS 16 resulted in a
reclassification of -0.3 billion euros to “Right-of-use assets”, Equity 35,390 33,957 1,433
corresponding to assets held under finance leases. Net financial debt/
Equity ratio 24.5% 16.2% 8.3 pts
Right-of-use assets amounted to 12.1 billion euros as of June 30,
2019, including 11.8 billion euros related to the recognition of (1) The financial statements as of December 31, 2018 have not been restated to reflect
right-of-use assets for leases with fixed payments, and 0.4 billion the application of IFRS 16 Leases. See Note 1.2 to the condensed consolidated
financial statements regarding the impact of the application of IFRS 16.
euros related to the reclassification of leasehold rights, previously (2) Net financial debt as of December 31, 2018 was adjusted to take into account
presented within “Intangible assets”. Store leases represented Belmond shares, presented within “Non-current available for sale financial assets”.
See Note 18.1 to the 2018 consolidated financial statements.
the majority of right-of-use assets, for a total of 9.6 billion euros.
Other non-current assets increased by 0.5 billion euros, amounting The ratio of net financial debt to equity, amounted to 24.5%,
to 5.2 billion euros, primarily as a result of the change in the up 8.3 points compared to 16.2% as of December 31, 2018. This
market value of derivatives. change was mainly due to the acquisition of Belmond, which
contributed 2.8 billion euros to the increase in the Group’s net
Inventories were up 1.1 billion euros, an increase related to
financial debt.
inventory build-up over the period (see “Comments on the
consolidated cash flow statement”). Total equity amounted to 35.4 billion euros as of end-June 2019,
up 1.4 billion euros from year-end 2018. Net profit for the six-
Other current assets decreased by 0.5 billion euros, mainly due
month period, after the distribution of dividends, contributed
to the 0.6 billion euro decrease in cash and cash equivalents,
1.2 billion euros to this increase. In addition, exchange rate
with operating receivables increasing slightly by 0.2 billion euros,
fluctuations had a positive impact of 0.1 billion euros on the
while the market value of derivatives increased by 0.1 billion
reserves of entities reporting in foreign currencies; this mainly
euros.
concerned the reserves of entities reporting in US dollars.
The application of IFRS 16 resulted in the recognition of lease As of June 30, 2019, total equity was equal to 39% of total assets,
liabilities for a total of 12.1 billion euros, including 10.1 billion compared to 46% as of year-end 2018.
euros in non-current lease liabilities and 2.0 billion euros in
current lease liabilities, offset against right-of-use assets.

Comments on the consolidated cash flow statement
Gross borrowings after derivatives totaled 13.6 billion euros as of 0.3 billion euros in net financial debt. Cash, cash equivalents,
of end-June 2019, up 2.4 billion euros compared with year-end and current and non-current available for sale financial assets
2018. Bond debt increased by 0.7 billion euros, following the used to hedge financial debt totaled 4.9 billion euros as of end-
two bond issues completed during the half-year period totaling June 2019, down 0.8 billion euros from 5.7 billion euros at
1 billion euros, and partly offset by the repayment of the year-end 2018. Net financial debt thus increased by 3.2 billion
0.3 million euro bond issued in 2014. Moreover, commercial euros.
paper outstanding increased by 1.9 billion euros and bank
As of end-June, 2019, the Group’s undrawn confirmed credit lines
borrowings by 0.1 billion euros. Following the application of
amounted to 5.9 billion euros, exceeding the outstanding portion
IFRS 16, finance lease liabilities were reclassified as lease liabilities,
of its commercial paper program, which came to 5.1 billion
which are excluded from net financial debt, resulting in a decrease
euros as of June 30, 2019.
8. COMMENTS ON THE CONSOLIDATED CASH FLOW STATEMENT
(EUR millions) June 30, 2019 June 30, 2018 (1) Variation
Cash from operations before changes in working capital 7,399 5,464 1,935
Cost of net financial debt: interest paid (37) (73) 36
Lease liabilities: interest paid (109) - (109)
Tax paid (1,191) (907) (284)
Change in working capital (1,873) (1,323) (550)
Net cash from operating activities 4,189 3,161 1,028
Operating investments (1,423) (1,204) (219)

Repayment of lease liabilities (1,071) - (1,071)
Operating free cash flow 1,695 1,957 (262)
Financial investments including purchase and sale of consolidated investments (1,965) (35) (1,930)
Equity-related transactions (2,339) (2,134) (205)
Change in cash before financing activities (2,609) (212) (2,397)
(1) The financial statements as of June 30, 2018 have not been restated to reflect the application of IFRS 16 Leases. See Note 1.2 to the condensed consolidated financial statements
regarding the impact of the application of IFRS 16.
Cash from operations before changes in working capital totaled Tax paid came to 1,191 million euros, 31% higher than 907 million
7,399 million euros, up 1,935 million euros from 5,464 million euros paid a year earlier, mainly due to the increase in the Group’s
euros a year earlier. After tax and interest paid on net financial earnings in all the geographic regions in which it operates.
debt and lease liabilities, and after the change in working capital,
The 1,873 million euro increase in the working capital requirement
net cash from operating activities amounted to 4,189 million
was 550 million euros higher than the level observed a year
euros, up 1,028 million euros from the first half of 2018, including
earlier. The cash requirement relating to the increase in inventories
1,061 million euros related to the application of IFRS 16. The
amounted to 1,210 million euros for the half-year period, versus
impact of the application of IFRS 16 consisted of the cancellation
1,038 million euros a year earlier. The increase in inventories
of depreciation of right-of-use assets for 1,171 million euros and
mainly concerned the Fashion & Leather Goods and Watches &
the recognition of interest paid on lease liabilities for 109 million
Jewelry business groups. The decrease in trade accounts payable
euros. Since IFRS 16 was only applied to the 2019 fiscal year,
and tax and social security liabilities generated an additional cash
net cash from operating activities for the first half of 2019 is not
requirement of 917 million euros during the half-year period,
comparable to the first half of 2018.
a significant increase from 567 million euros in the first half of
Interest paid on net financial debt totaled 37 million euros in 2018. The decrease in trade accounts receivable of 254 million
the first half of 2019, down 36 million euros from 73 million euros (versus 282 million euros in the first half of 2018), helped
euros in the first half of 2018, due in particular to the change in to finance only partially the cash requirement generated by the
the amounts paid in respect of forward points relating to foreign increase in inventories and the decrease in operating liabilities.
exchange swaps having matured during the period. These changes reflect the seasonal nature of the Group’s business
activities.

Comments on the consolidated cash flow statement
Operating investments net of disposals resulted in an outflow and proceeds from sale of non-current available for sale financial
of 1,423 million euros as of June 30, 2019, compared to 1,204 million assets. As of June 30, 2018, financial investments accounted for
euros a year earlier. These mainly included investments by the an outflow of 35 million euros.
Group’s brands – notably Louis Vuitton, DFS, Sephora, Celine
Equity-related transactions generated an outflow of 2,339 million
and Christian Dior Couture – in their retail networks. They also
euros. This amount included 2,012 million euros in dividends
included investments related to the La Samaritaine project as
paid by LVMH SE during the first half of the year (excluding
well as investments by the champagne houses and Hennessy in
treasury shares), which comprised the final dividend payment
their production equipment.
in respect of fiscal year 2018, in addition to tax on dividends
Repayment of lease liabilities totaled 1,071 million euros in the paid for 66 million euros. Dividends paid to minority interests
first half of 2019. in consolidated subsidiaries amounted to 334 million euros.
Conversely, other equity-related transactions generated an inflow
As of June 30, 2019, operating free cash flow amounted to
of 73 million euros, including 21 million euros related to the
1,695 million euros, down 13% from 1,957 million euros recorded
exercise of share subscription options.
in the first half of 2018. This indicator is defined in the
consolidated cash flow statement. In addition to net cash from The financing requirement after all transactions relating to operating
operating activities, it includes operating investments and activities, investing activities and equity-related transactions
repayment of lease liabilities, both of which the Group considers thus totaled 2,609 million euros, of which 2,032 million euros
as related to its operating activities. were financed by net proceeds from borrowings. The change in
the cumulative translation adjustment had a positive 15 million
As of June 30, 2019, financial investments accounted for an
euro impact on cash balances, after which the period-end cash
outflow of 1,965 million euros, including 1,878 million euros
balance was 562 million euros lower than year-end 2018, and
for the acquisition of Belmond and 81 million euros for purchase
totaled 3,851 million euros.

CONDENSED HALF-YEAR
CONSOLIDATED FINANCIAL
STATEMENTS
CONSOLIDATED INCOME STATEMENT 22

CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES 23
CONSOLIDATED BALANCE SHEET 24
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 25
CONSOLIDATED CASH FLOW STATEMENT 26
SELECTED NOTES TO THE CONDENSED HALF-YEAR CONSOLIDATED
FINANCIAL STATEMENTS 27

CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
(EUR millions, except for earnings per share) Notes June 30, 2019 Dec. 31, 2018 (a) June 30, 2018 (a)
Revenue 24 25,082 46,826 21,750

Cost of sales (8,447) (15,625) (7,130)
Gross margin 16,635 31,201 14,620
Marketing and selling expenses (9,563) (17,755) (8,305)

General and administrative expenses (1,789) (3,466) (1,679)
Income/(loss) from joint ventures and associates 8 12 23 12
Profit from recurring operations 24 5,295 10,003 4,648
Other operating income and expenses 25 (54) (126) (70)
Operating profit 5,241 9,877 4,578
Cost of net financial debt (51) (117) (56)

Interest on lease liabilities (145) - -
Other financial income and expenses (9) (271) 34
Net financial income/(expense) 26 (205) (388) (22)
Income taxes 27 (1,431) (2,499) (1,264)
Net profit before minority interests 3,605 6,990 3,292
Minority interests 18 (337) (636) (288)
Basic Group share of net earnings per share (EUR) 28 6.49 12.64 5.97
Number of shares on which the calculation is based 503,611,097 502,825,461 502,816,581
Diluted Group share of net earnings per share (EUR) 28 6.48 12.61 5.96
Number of shares on which the calculation is based 504,554,724 503,918,140 504,102,671
(a) The financial statements as of December 31 and June 30, 2018 have not been restated to reflect the application of IFRS 16 Leases. See Note 1.2 regarding the impact of the
application of IFRS 16.

CONSOLIDATED STATEMENT OF COMPREHENSIVE GAINS AND LOSSES
(EUR millions) Notes June 30, 2019 Dec. 31, 2018 June 30, 2018
Net profit before minority interests 3,605 6,990 3,292
Translation adjustments 101 274 133

Amounts transferred to income statement 1 (1) -
Tax impact 4 15 7
16.5, 18 106 288 140
Change in value of hedges of future foreign currency cash flows (12) 3 (7)
Amounts transferred to income statement 25 (279) (266)
Tax impact (3) 79 79
10 (197) (194)
Change in value of the cost of hedging instruments (81) (271) (159)

Amounts transferred to income statement 109 148 56
Tax impact (8) 31 25
20 (92) (78)
Gains and losses recognized in equity, transferable to income statement 136 (1) (132)
Change in value of vineyard land 6 - 8 -

Amounts transferred to consolidated reserves - - -
Tax impact - (2) -
- 6 -
Employee benefit commitments: change in value resulting

from actuarial gains and losses (78) 28 -
Tax impact 25 (5) -
(53) 23 -
Gains and losses recognized in equity, not transferable to income statement (53) 29 -
Comprehensive income 3,688 7,018 3,160

Minority interests (338) (681) (303)
Comprehensive income, Group share 3,350 6,337 2,857

CONSOLIDATED BALANCE SHEET
ASSETS (EUR millions) Notes June 30, 2019 Dec. 31, 2018 (a) June 30, 2018 (a)
Brands and other intangible assets 3 16,893 17,254 17,026

Goodwill 4 16,406 13,727 14,026
Property, plant and equipment 6 16,225 15,112 14,162
Right-of-use assets 7 12,138 - -
Investments in joint ventures and associates 8 715 638 640
Non-current available for sale financial assets 9 910 1,100 883
Other non-current assets 10 1,454 986 1,062
Deferred tax 2,077 1,932 1,775
Non-current assets 66,818 50,749 49,574
Inventories and work in progress 11 13,561 12,485 11,883

Trade accounts receivable 12 3,004 3,222 2,738
Income taxes 334 366 463
Other current assets 13 3,208 2,868 2,860
Cash and cash equivalents 15 3,999 4,610 4,222
Current assets 24,106 23,551 22,166
Total assets 90,924 74,300 71,740
LIABILITIES AND EQUITY (EUR millions) Notes June 30, 2019 Dec. 31, 2018 (a) June 30, 2018 (a)
Equity, Group share 16.1 33,678 32,293 29,990

Minority interests 18 1,712 1,664 1,492
Equity 35,390 33,957 31,482
Long-term borrowings 19 5,588 6,005 6,692

Non-current lease liabilities 7 10,139 - -
Non-current provisions and other liabilities 20 3,647 3,188 3,381
Deferred tax 5,123 5,036 4,958
Purchase commitments for minority interests’ shares 21 9,989 9,281 9,461
Non-current liabilities 34,486 23,510 24,492
Short-term borrowings 19 7,890 5,027 5,659

Current lease liabilities 7 2,029 - -
Trade accounts payable 22.1 5,163 5,314 4,608
Income taxes 800 538 651
Current provisions and other liabilities 22.2 5,166 5,954 4,848
Current liabilities 21,048 16,833 15,766
Total liabilities and equity 90,924 74,300 71,740

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(EUR millions) Number Share Share Treasury Cumulative Revaluation reserves Net profit Total equity
of shares capital premium shares translation and other
account adjustment Available Hedges of Vineyard Employee reserves Group Minority Total
for sale future foreign land benefit share interests
financial currency cash commit-
assets flows and cost ments
of hedging
Notes 16.1 16.1 16.3 16.5 18
As of December 31, 2017 507,042,596 152 2,614 (530) 354 - 130 1,114 (133) 25,268 28,969 1,408 30,377
Gains and losses recognized
in equity 219 - (259) 3 20 - (17) 45 28
Net profit 6,354 6,354 636 6,990
Comprehensive income - - - 219 - (259) 3 20 6,354 6,337 681 7,018
Stock option plan-related expenses 78 78 4 82
(Acquisition)/disposal
of treasury shares (256) (26) (282) - (282)
Exercise of LVMH share
subscription options 762,851 49 - 49 - 49
Retirement of LVMH shares (2,775,952) (365) 365 - - - -
Capital increase in subsidiaries - - 50 50
Interim and final dividends paid (2,715) (2,715) (345) (3,060)
Changes in control
of consolidated entities (9) (9) 41 32
Acquisition and disposal
of minority interests’ shares (22) (22) (19) (41)
Purchase commitments
for minority interests’ shares (112) (112) (156) (268)
As of December 31, 2018 505,029,495 152 2,298 (421) 573 - (129) 1,117 (113) 28,816 32,293 1,664 33,957
Impact of changes
in accounting standards (a) (29) (29) - (29)
As of January 1, 2019 505,029,495 152 2,298 (421) 573 - (129) 1,117 (113) 28,787 32,264 1,664 33,928
in equity 102 - 27 - (48) - 81 1 82
Net profit 3,268 3,268 337 3,605
Comprehensive income - - - 102 - 27 - (48) 3,268 3,349 338 3,687
of treasury shares 10 4 14 - 14
Retirement of LVMH shares (2,156) - - - -
Changes in control
of consolidated entities 4 4 2 6
of minority interests’ shares (6) (6) 2 (4)
for minority interests’ shares 10 10 15 25
As of June 30, 2019 505,431,285 152 2,319 (411) 675 - (102) 1,117 (161) 30,089 33,678 1,712 35,390
As of December 31, 2017 507,042,596 152 2,614 (530) 354 - 130 1,114 (133) 25,268 28,969 1,408 30,377
in equity 97 - (244) - - - (147) 15 (132)
Net profit 3,004 3,004 288 3,292
Comprehensive income - - - 97 - (244) - - 3,004 2,857 303 3,160
of treasury shares (80) (6) (86) - (86)
Retirement of LVMH shares (2,015,257) (331) 331 - - - -
Changes in control
of consolidated entities - - (2) (2)
of minority interests’ shares (69) (69) (14) (83)
for minority interests’ shares (59) (59) 57 (2)
As of June 30, 2018 505,788,034 152 2,332 (279) 451 - (114) 1,114 (133) 26,467 29,990 1,492 31,482
(a) The impact of changes in accounting standards arose from the application of IFRS 16 Leases as of January 1, 2019. See Note 1.2 regarding the impact of the application of IFRS 16.

CONSOLIDATED CASH FLOW STATEMENT
(EUR millions) Notes June 30, 2019 Dec. 31, 2018 (a) June 30, 2018 (a)
I. OPERATING ACTIVITIES
Operating profit 5,241 9,877 4,578
(Income)/loss and dividends received from joint ventures and associates 8 (9) 5 (2)
Net increase in depreciation, amortization and provisions 1,193 2,302 1,066
Depreciation of right-of-use assets 7.1 1,171 - -
Other adjustments and computed expenses (197) (219) (178)
Cash from operations before changes in working capital 7,399 11,965 5,464
Cost of net financial debt: interest paid (37) (113) (73)
Lease liabilities: interest paid (109) - -
Tax paid (1,191) (2,275) (907)
Change in working capital 15.2 (1,873) (1,087) (1,323)
II. INVESTING ACTIVITIES

Operating investments 15.3 (1,423) (3,038) (1,204)
Purchase and proceeds from sale of consolidated investments 2 (1,885) (17) (5)
Dividends received 1 18 18
Tax paid related to non-current available for sale financial assets
and consolidated investments - (2) (1)
Purchase and proceeds from sale of non-current available for sale financial assets 9 (81) (400) (47)
Net cash from/(used in) investing activities (3,388) (3,439) (1,239)
III. FINANCING ACTIVITIES

Interim and final dividends paid 15.4 (2,412) (3,090) (2,039)
Purchase and proceeds from sale of minority interests (9) (236) (72)
Other equity-related transactions 15.4 82 (205) (23)
Proceeds from borrowings 19 2,988 1,529 1,571
Repayment of borrowings 19 (956) (2,174) (822)
Repayment of lease liabilities 7.2 (1,071) - -
Purchase and proceeds from sale of current available for sale financial assets 14 - (147) (131)
Net cash from/(used in) financing activities (1,378) (4,323) (1,516)
IV. EFFECT OF EXCHANGE RATE CHANGES 15 67 29
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (I+II+III+IV) (562) 795 435
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 15.1 4,413 3,618 3,618
CASH AND CASH EQUIVALENTS AT END OF PERIOD 15.1 3,851 4,413 4,053
TOTAL TAX PAID (1,256) (2,314) (951)
Alternative performance measure

The following table presents the reconciliation between “Net cash from operating activities” and “Operating free cash flow” for the
periods presented:
(EUR millions) June 30, 2019 Dec. 31, 2018 June 30, 2018

Operating investments (1,423) (3,038) (1,204)
Repayment of lease liabilities (1,071) - -
Operating free cash flow (a) 1,695 5,452 1,957
(a) Under IFRS 16, fixed lease payments are treated partly as interest payments and partly as principal repayments. For its own operational management purposes, the Group treats all
lease payments as components of its “Operating free cash flow”, whether the lease payments made are fixed or variable. In addition, for its own operational management
purposes, the Group treats operating investments as components of its “Operating free cash flow”.

SELECTED NOTES TO THE CONDENSED
HALF-YEAR CONSOLIDATED
FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES 28
2. CHANGES IN OWNERSHIP INTERESTS IN CONSOLIDATED ENTITIES 30
3. BRANDS, TRADE NAMES AND OTHER INTANGIBLE ASSETS 31
4. GOODWILL 32
5. IMPAIRMENT TESTING OF INTANGIBLE ASSETS
WITH INDEFINITE USEFUL LIVES 32
6. PROPERTY, PLANT AND EQUIPMENT 32
7. LEASES 34
8. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES 35
9. NON-CURRENT AVAILABLE FOR SALE FINANCIAL ASSETS 36
10. OTHER NON-CURRENT ASSETS 36
11. INVENTORIES AND WORK IN PROGRESS 36
12. TRADE ACCOUNTS RECEIVABLE 37
13. OTHER CURRENT ASSETS 38
14. CURRENT AVAILABLE FOR SALE FINANCIAL ASSETS 38
15. CASH AND CHANGE IN CASH 38
16. EQUITY 40
17. STOCK OPTION AND SIMILAR PLANS 42
18. MINORITY INTERESTS 43
19. BORROWINGS 44
20. PROVISIONS AND OTHER NON-CURRENT LIABILITIES 46
21. PURCHASE COMMITMENTS FOR MINORITY INTERESTS’ SHARES 47
22. TRADE ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES 47
23. FINANCIAL INSTRUMENTS AND MARKET RISK MANAGEMENT 48
24. SEGMENT INFORMATION 51
25. OTHER OPERATING INCOME AND EXPENSES 54
26. NET FINANCIAL INCOME/(EXPENSE) 55
27. INCOME TAXES 55
28. EARNINGS PER SHARE 56
29. OFF-BALANCE SHEET COMMITMENTS 56
30. EXCEPTIONAL EVENTS AND LITIGATION 57
31. RELATED-PARTY TRANSACTIONS 57
32. SUBSEQUENT EVENTS 57

Selected notes to the consolidated ﬁnancial statements
1. ACCOUNTING POLICIES
1.1 General framework and environment
The condensed consolidated financial statements for the first The interim financial statements are prepared using the same
half of 2019 were approved by the Board of Directors on July 24, accounting principles and policies as those applied for the
2019. These financial statements were prepared in accordance preparation of the annual financial statements, with the exception
with IAS 34 relating to the preparation of interim financial of the determination of the income tax rate, which is calculated
statements, as well as international accounting standards and based on the expected rate for the fiscal year. Moreover, comparability
interpretations (IAS/IFRS) adopted by the European Union and of the Group’s half-year and annual financial statements may be
in force on June 30, 2019; these standards and interpretations affected by the seasonal nature of the Group’s businesses, which
were applied consistently to the periods presented. achieve a higher level of revenue during the second half of the
year than in the first half (see Note 24 “Segment information”).
1.2 Changes in the accounting framework applicable to LVMH
Standards, amendments and interpretations it encounters a wide range of different legal conditions when
for which application became mandatory in 2019 entering into contracts. The lease term generally used to calculate
the liability is the term of the initially negotiated lease, not
The Group applies IFRS 16 Leases as of January 1, 2019.
taking into account any early termination or extension options,
When entering into a lease involving fixed payments, this except in special circumstances. No lease liabilities are recognized
standard requires that a liability be recognized in the balance if LVMH and the lessor can cancel their commitment with
sheet, measured at the discounted present value of future less than 12 months’ notice. The discount rate is determined
payments and offset against a right-of-use asset depreciated over for each lease using the incremental borrowing rate of the
the lease term. subsidiary entering into the lease. Given the structure of the
Group’s financing – virtually all of which is held or guaranteed
The Group applied what is known as the “modified retrospective”
by LVMH SE – in practice, this incremental borrowing rate
transition method, under which a liability is recognized at the
is generally determined as the total of the risk-free rate for the
transition date for an amount equal to the present value of
lease currency, with respect to the duration, and the Group’s
the residual lease payments alone, offset against a right-of-use
credit risk for this same reference currency and term.
asset adjusted for the amount of prepaid lease payments or
amounts recognized within accrued expenses; all the impacts of Leasehold rights, previously recognized within “Intangible
the transition were deducted from equity. The standard provided assets”, as well as “Property, plant and equipment” related to
for various simplification measures during the transition phase: restoration obligations for leased facilities, are now presented
in particular, the Group opted to apply the measures allowing within “Right-of-use assets” and subject to depreciation according
it to exclude leases with a residual term of less than twelve months to consistent principles.
and leases of low-value assets, to continue applying the same
The Group has implemented a dedicated IT solution to gather
treatment to leases that qualified as finance leases under IAS 17,
lease data and run the calculations required by the standard.
and not to capitalize costs directly related to signing leases.
Most leases are related to the Group’s retail premises (see Note 7
The amount of the liability depends to a large degree on the
for details). Such leases are actively managed and directly linked
assumptions used for the lease term and, to a lesser extent, the
to the conduct of Maisons’ business and their distribution
discount rate. The Group’s extensive geographic coverage means
strategy.

The following table presents the impact of the application of IFRS 16 on the opening balance sheet:
(EUR millions) As of Impact of the As of

Dec. 31, 2018 transition to Jan. 1, 2019
IFRS16
Brands, goodwill and intangible assets 30,981 (379) 30,602

Property, plant and equipment 15,112 (355) 14,757
Right-of-use assets - 11,867 11,867
Other non-current assets 4,656 (13) 4,643
Current assets 23,551 (53) 23,498
Total assets 74,300 11,067 85,367
Equity, Group share 32,293 (29) 32,264

Minority interests 1,664 - 1,664
Non-current lease liabilities - 9,679 9,679
Provisions and other non-current liabilities 23,510 (343) 23,167
Current lease liabilities - 2,149 2,149
Other current liabilities 16,833 (389) 16,444
Total liabilities and equity 74,300 11,067 85,367
“Lease liabilities” totaled 11.8 billion euros as of January 1, 2019 The following table provides details on the difference between
and comprised: lease commitments presented in accordance with IAS 17 as of
December 31, 2018, and lease liabilities measured according to
– lease liabilities newly recognized in respect of operating leases
IFRS 16 as of January 1, 2019:
in effect as of January 1, 2019 for 11.5 billion euros, including
9.4 billion euros for long-term leases;
(EUR millions)
– finance lease liabilities for 0.3 billion euros, recognized under
Commitments given for operating leases
“Borrowings” as of December 31, 2018.
and concessions as of December 31, 2018 12,573
The average discount rate for lease liabilities at the transition
Minimum payments on finance leases
date was 2.2%.
as of December 31, 2018 830
“Right-of-use assets” totaled 11.9 billion euros as of January 1, 2019 Impact of discounting (1,953)
and comprised: Other 378
– assets corresponding to newly recognized lease liabilities for Lease liabilities as of January 1, 2019
11.5 billion euros; under IFRS 16 11,828
– the carrying amount of property, plant and equipment

“Other” mainly comprises the recognition of optional periods
covered by finance leases for 0.3 billion euros, recognized
that were not covered by the definition of off-balance sheet
within “Property, plant and equipment” as of December 31,
commitments presented in accordance with IAS 17.
2018;
The impact of applying IFRS 16 on profit from recurring
– the carrying amount of leasehold rights for 0.4 billion euros,
operations and net profit is not significant.
recognized within “Intangible assets” as of December 31, 2018;
Under the modified retrospective transition method, the
– various lease-related current receivables and payables recognized
standard prohibits the restatement of comparative fiscal years.
as of December 31, 2018 and reclassified within “Right-of-use
Given the importance of leases to the Group’s activities, and in
assets”, representing a net liability of -0.3 billion euros, in
order to present consistent performance indicators, independently
particular liabilities related to the recognition of leases on a
of the fixed or variable nature of lease payments, specific indicators
straight-line basis.
are used for internal performance monitoring requirements and
financial communication purposes; in particular, capitalized
fixed lease payments are deducted in their entirety from cash
flow in order to calculate the aggregate entitled “Operating free
cash flow”. In correlation, the liability for capitalized leases is
excluded from the definition of net financial debt.

The Group applies IFRIC 23 Uncertainty over Income Tax simplified in order to make these statements easier to understand.
Treatments as of January 1, 2019. It did not have any significant This included separating “Purchase commitments for minority
impact on the Group’s financial statements. interests’ shares” from other balance sheet liabilities, while other
items were grouped together, with detailed breakdowns inserted
As a result of the application of new standards that took effect
in additional notes.
on January 1, 2019 – IFRS 16 in particular – the presentation of
the balance sheet and cash flow statement was modified and
2. CHANGES IN OWNERSHIP INTERESTS IN CONSOLIDATED ENTITIES
Belmond
On April 17, 2019, pursuant to the transaction agreement announced The amounts presented in the table above are taken from Belmond’s
on December 14, 2018 and approved by Belmond’s shareholders unaudited financial statements at the date of acquisition of the
on February 14, 2019, LVMH acquired, for cash, all the Class A controlling interest; there has been no revaluation. The main
shares of Belmond Ltd at a unit price of 25 US dollars, for a items that may be subject to revaluation are real estate assets
total of 2.2 billion US dollars. After taking into account the and the Belmond brand.
shares acquired on the market in December 2018, the carrying
The carrying amount of shares held as of the date of acquisition
amount of Belmond shares held came to 2.3 billion euros.
of the controlling interest includes shares acquired in 2018 for
Following this acquisition, Belmond’s Class A shares were no
274 million euros.
longer listed on the New York Stock Exchange.
During the six-month period, the Belmond acquisition generated
Belmond, which has locations in 24 countries, owns and operates
an outflow of 1,878 million euros, net of cash acquired in the
an exceptional portfolio of very high-end hotels and travel
amount of 101 million euros. Following the acquisition of the
experiences in the world’s most desirable, prestigious destinations.
controlling interest, Belmond’s long-term bank borrowings were
The following table details the provisional allocation of the repaid in the amount of 560 million euros.
purchase price paid by LVMH on April 17, 2019, the date of
No components of Belmond’s activities were recorded in LVMH’s
acquisition of the controlling interest:
2019 interim consolidated financial statements. For 2018 as a
whole, Belmond had consolidated revenue of 577 million US
(EUR millions) Provisional purchase
price allocation dollars, and an operating profit of 12 million US dollars.
Brand and other intangible assets 6

Property, plant and equipment 1,119
Other current and non-current assets 202
Net financial debt (586)
Deferred tax (80)
Current and non-current liabilities (335)
Minority interests (1)
Net assets acquired 325
Provisional goodwill 1,928
Carrying amount of shares held

as of April 17, 2019 2,253

3. BRANDS, TRADE NAMES AND OTHER INTANGIBLE ASSETS
(EUR millions) June 30, 2019 Dec. 31, 2018 (a) June 30, 2018 (a)
Gross Amortization Net Net Net

and impairment
Brands 14,317 (724) 13,593 13,596 13,523

Trade names 3,873 (1,596) 2,277 2,265 2,229
License rights 94 (83) 11 13 14
Software, websites 2,030 (1,478) 552 544 457
Other 1,057 (597) 460 836 803
Total 21,371 (4,478) 16,893 17,254 17,026
As of December 31 and June 30, 2018, “Other intangible assets” included leasehold rights. As from January 1, 2019, in accordance
with IFRS 16, leasehold rights are now presented within “Right-of-use assets” (see Note 7).
Movements during the six-month period in the net amounts of brands, trade names and other intangible assets were as follows:
Gross value Brands Trade names Software, Other intangible Total

(EUR millions) websites assets
As of December 31, 2018 14,292 3,851 1,903 1,964 22,010
Impact of changes in accounting standards (a)

- - - (770) (770)
As of January 1, 2019, after restatement 14,292 3,851 1,903 1,194 21,240
Acquisitions - - 57 144 201

Disposals and retirements - - (13) (102) (115)
Changes in the scope of consolidation - - 8 - 8
Translation adjustment 25 22 5 5 57
Reclassifications - - 70 (90) (20)
As of June 30, 2019 14,317 3,873 2,030 1,151 21,371
Amortization Brands Trade names Software, Other intangible Total

and impairment (EUR millions) websites assets
As of December 31, 2018 (696) (1,586) (1,359) (1,115) (4,756)
Impact of changes in accounting standards (a)

- - - 391 391
As of January 1, 2019, after restatement (696) (1,586) (1,359) (724) (4,365)
Amortization expense (5) - (128) (67) (200)

Impairment expense (20) - - 5 (15)
Disposals and retirements - - 13 102 115
Changes in the scope of consolidation - - (1) - (1)
Translation adjustment (3) (10) (3) (3) (19)
Reclassifications - - - 7 7
As of June 30, 2019 (724) (1,596) (1,478) (680) (4,478)
Carrying amount as of June 30, 2019 13,593 2,277 552 471 16,893
(a) The impact of changes in accounting standards arose from the application of IFRS 16 Leases as of January 1, 2019. See Note 1.2.

4. GOODWILL
Gross Impairment Net Net Net

Goodwill arising on consolidated investments 12,350 (1,752) 10,598 8,654 8,514
Goodwill arising on purchase commitments
for minority interests’ shares 5,808 - 5,808 5,073 5,512
Total 18,158 (1,752) 16,406 13,727 14,026
Changes in net goodwill during the periods presented break down as follows:

As of January 1 15,462 (1,735) 13,727 13,837 13,837
Changes in the scope of consolidation 1,935 - 1,935 45 (35)
Changes in purchase commitments
for minority interests’ shares 733 - 733 (126) 248
Changes in impairment - (11) (11) (100) (61)
Translation adjustment 28 (5) 23 71 37
As of period-end 18,158 (1,752) 16,406 13,727 14,026
Changes in the scope of consolidation mainly resulted from the acquisition of Belmond. See Note 2.
See also Note 21 for goodwill arising on purchase commitments for minority interests’ shares.
5. IMPAIRMENT TESTING OF INTANGIBLE ASSETS

WITH INDEFINITE USEFUL LIVES
Brands, trade names and other intangible assets with indefinite useful lives as well as the goodwill arising on acquisition were
subject to annual impairment testing as of December 31, 2018. No significant impairment expense was recognized during the first
half of 2019, as no events likely to lead to a material loss in value occurred during the period.
6. PROPERTY, PLANT AND EQUIPMENT
Gross Depreciation Net Net Net

and impairment
Land 2,779 (85) 2,694 2,838 2,456
Vineyard land and producing vineyards (b) 2,587 (114) 2,473 2,473 2,420
Buildings 5,280 (2,040) 3,240 2,292 2,327
Investment property 639 (37) 602 602 534
Leasehold improvements, machinery
and equipment 13,207 (9,094) 4,113 4,078 3,882
Assets in progress 1,432 (2) 1,430 1,237 1,034
Other property, plant and equipment 2,210 (537) 1,673 1,592 1,509
Total 28,134 (11,909) 16,225 15,112 14,162
Of which: historical cost of vineyard land 577 - 577 576 533
(b) Almost all of the carrying amount of “Vineyard land and producing vineyards” corresponds to vineyard land.

Changes in property, plant and equipment during the period broke down as follows:
Gross value Vineyard land Land and Investment Leasehold improvements, Assets in Other Total
(EUR millions) and producing buildings property machinery and equipment progress property,
vineyards plant and
Stores Production, Other equipment
logistics
As of December 31, 2018 2,584 7,051 637 8,632 2,756 1,351 1,238 2,074 26,323
Impact of changes
in accounting standards (a) - (395) - (149) (50) (32) (3) (1) (630)
As of January 1, after restatement 2,584 6,656 637 8,483 2,706 1,319 1,235 2,073 25,693
Acquisitions 3 56 1 241 66 37 650 63 1,117

Change in the market value
of vineyard land - - - - - - - - -
Disposals and retirements - (18) (24) (201) (32) (30) (16) (9) (330)
Changes in the scope
of consolidation - 1,172 - 261 - - - 89 1,522
Translation adjustment 1 25 1 64 5 5 1 4 106
Other movements,
including transfers (1) 168 24 176 66 41 (438) (10) 26
As of June 30, 2019 2,587 8,059 639 9,024 2,811 1,372 1,432 2,210 28,134
Depreciation Vineyard land Land and Investment Leasehold improvements, Assets in Other Total
and impairment and producing buildings property machinery and equipment progress property,
(EUR millions) vineyards plant and
Stores Production, Other equipment
logistics
As of December 31, 2018 (111) (1,921) (35) (5,907) (1,810) (944) (1) (482) (11,211)
Impact of changes
in accounting standards (a) - 135 - 88 28 23 (1) 2 275
As of January 1, after restatement (111) (1,786) (35) (5,819) (1,782) (921) (2) (480) (10,936)
Depreciation expense (3) (90) (2) (478) (88) (67) - (33) (761)
Impairment expense - - - 1 - - (15) - (14)
Disposals and retirements - 17 - 203 32 28 14 10 304
of consolidation - (227) - (141) - - - (35) (403)
Translation adjustment - (9) - (42) (4) (3) - (2) (60)
Other movements,
including transfers - (30) - 4 (15) (2) 1 3 (39)
As of June 30, 2019 (114) (2,125) (37) (6,272) (1,857) (965) (2) (537) (11,909)
Carrying amount
as of June 30, 2019 2,473 5,934 602 2,752 954 407 1,430 1,673 16,225
“Other property, plant and equipment” includes in particular Changes in the scope of consolidation mainly resulted from
the works of art owned by the Group. the acquisition of Belmond. See Note 2.
Purchases of property, plant and equipment mainly include Translation adjustments arose mainly on property, plant and
investments by the Group’s brands – notably Louis Vuitton, equipment recognized in US dollars, due to exchange rate
DFS, Sephora, Celine and Christian Dior Couture – in their fluctuations against the euro between the beginning and end
retail networks. They also included investments related to the of the period.
La Samaritaine project as well as investments by the champagne
houses and Hennessy in their production equipment.

7. LEASES
7.1 Right-of-use assets
Right-of-use assets break down as follows, by type of underlying asset:
(EUR millions) June 30, 2019 January 1, 2019
Gross Depreciation Net Net

and impairment
Stores 10,597 (999) 9,598 9,472

Offices 1,605 (162) 1,443 1,332
Other 789 (64) 725 718
Capitalized fixed lease payments 12,991 (1,225) 11,766 11,522
Leasehold rights 751 (379) 372 345
Total 13,742 (1,604) 12,138 11,867
The net amounts of right-of-use assets changed as follows during the half-year period:
Gross value Capitalized fixed lease payments Leasehold Total

(EUR millions) rights
Stores Offices Other Total
As of January 1, 2019 9,531 1,365 728 11,624 673 12,297
New leases entered into 918 279 66 1,263 42 1,305

Changes in assumptions 87 (5) (2) 80 - 80
Leases ended or canceled (101) (6) (10) (117) (22) (139)
Changes in scope of consolidation 56 - - 56 2 58
Translation adjustment 76 8 6 90 2 92
Other movements, including transfers 30 (36) 1 (5) 54 49
As of June 30, 2019 10,597 1,605 789 12,991 751 13,742
Depreciation and impairment Capitalized fixed lease payments Leasehold Total

(EUR millions) rights
Stores Offices Other Total
As of January 1, 2019 (59) (33) (10) (102) (328) (430)
Depreciation and amortization expense (942) (138) (56) (1,136) (26) (1,162)
Impairment expense - (6) - (6) (3) (9)
Leases ended or canceled 22 2 2 26 8 34
Changes in the scope of consolidation - - - - (5) (5)
Translation adjustment 2 - - 2 (1) 1
Other movements, including transfers (22) 13 - (9) (24) (33)
As of June 30, 2019 (999) (162) (64) (1,225) (379) (1,604)
Carrying amount as of June 30, 2019 9,598 1,443 725 11,766 372 12,138
“New leases entered into” mainly concern store leases, in particular for Sephora, Christian Dior Couture, DFS and Louis Vuitton.
They also include leases of office space, mainly for Parfums Christian Dior.

7.2 Lease liabilities
Lease liabilities break down as follows:
(EUR millions) June 30, 2019 January 1, 2019
Non-current lease liabilities 10,139 9,679

Current lease liabilities 2,029 2,149
Total 12,168 11,828
The change in lease liabilities during the half-year period breaks down as follows:
(EUR millions) Stores Offices Other Total
As of January 1, 2019 9,692 1,420 716 11,828
New leases entered into 907 277 65 1,249

Principal repayments (892) (122) (49) (1,063)
Change in accrued interest 30 4 1 35
Leases ended or canceled (79) (4) (8) (91)
Changes in assumptions 86 (5) (2) 79
Changes in the scope of consolidation 56 - - 56
Translation adjustment 79 8 6 93
Other movements, including transfers 26 (45) 1 (18)
As of June 30, 2019 9,905 1,533 730 12,168
8. INVESTMENTS IN JOINT VENTURES AND ASSOCIATES
Gross Impairment Net Of which Net Of which Net Of which

joint joint joint
arrangements arrangements arrangements
Share of net assets of joint ventures

and associates as of January 1 638 - 638 278 639 273 639 273
Share of net profit (loss) for the period 12 - 12 9 23 12 12 7

Dividends paid (3) - (3) - (28) (9) (10) -
of consolidation 58 - 58 58 (10) 2 (11) 2
Capital increases subscribed 3 - 3 2 3 1 2 1
Translation adjustment 3 - 3 - 7 - 3 -
Other, including transfers 4 - 4 4 4 (1) 5 1
Share of net assets of joint ventures

and associates as of period-end 715 - 715 351 638 278 640 284
Changes in the scope of consolidation mainly resulted from the acquisition of Belmond. See Note 2.

9. NON-CURRENT AVAILABLE FOR SALE FINANCIAL ASSETS
As of January 1 1,100 789 789
Acquisitions 117 450 92

Disposals at net realized value (40) (45) (25)
Changes in market value (a) 7 (101) 17
Changes in the scope of consolidation - - -
Translation adjustment 2 16 10
Reclassifications (276) (9) -
As of period-end 910 1,100 883
(a) Recognized within “Net financial income/(expense)”.
Reclassifications resulted from the acquisition of a controlling interest in Belmond, with the shares acquired in 2018 for 274 million
euros being included in the carrying amount of the investment held in Belmond. See Note 2.
10. OTHER NON-CURRENT ASSETS
Warranty deposits 408 379 348

Derivatives (b) 696 257 371
Loans and receivables 305 303 306
Other 45 47 37
Total 1,454 986 1,062
(b) See Note 23.
11. INVENTORIES AND WORK IN PROGRESS
Wines and eaux-de-vie in the process of aging 4,845 (11) 4,834 4,784 4,541
Other raw materials and work in progress 2,410 (439) 1,971 1,700 1,620
7,255 (450) 6,805 6,484 6,161
Goods purchased for resale 2,526 (230) 2,296 2,091 1,966

Finished products 5,421 (961) 4,460 3,910 3,756
7,947 (1,191) 6,756 6,001 5,722
Total 15,202 (1,641) 13,561 12,485 11,883

The net change in inventories for the periods presented breaks down as follows:
As of January 1 14,069 (1,584) 12,485 10,888 10,888
Change in gross inventories 1,210 - 1,210 1,722 1,038

Impact of provision for returns (a) (4) - (4) 7 -
Impact of marking harvests to market 4 - 4 16 5
Changes in provision for impairment - (217) (217) (285) (138)
Changes in the scope of consolidation 19 - 19 25 17
Translation adjustment 78 (15) 63 109 68
Other, including reclassifications (174) 175 1 3 5
As of period-end 15,202 (1,641) 13,561 12,485 11,883
(a) See Note 1.25 to the 2018 consolidated financial statements.
The impact of marking harvests to market on Wines & Spirits’ cost of sales and value of inventory is as follows:
Impact of marking the period’s harvest to market 11 41 14

Impact of inventory sold during the period (7) (25) (9)
Net impact on cost of sales of the period 4 16 5
12. TRADE ACCOUNTS RECEIVABLE
Trade accounts receivable, nominal amount 3,081 3,302 2,812

Provision for impairment (77) (78) (74)
Provision for product returns - (2) -
Net amount 3,004 3,222 2,738
The change in trade accounts receivable for the periods presented breaks down as follows:
As of January 1 3,300 (78) 3,222 2,736 2,736
Changes in gross receivables (285) - (285) 179 (304)

Changes in provision for impairment - 2 2 (1) 3
Changes in provision for product returns (a) - - - 7 -
Changes in the scope of consolidation 34 - 34 5 4
Translation adjustment 36 - 36 24 26
Reclassifications (4) (1) (5) 272 273
As of period-end 3,081 (77) 3,004 3,222 2,738
The trade accounts receivable balance is comprised essentially of receivables from wholesalers or agents, who are limited in number
and with whom the Group maintains ongoing relationships for the most part.

13. OTHER CURRENT ASSETS
Current available for sale financial assets (b) 788 666 728
Derivatives (c) 159 123 145
Tax accounts receivable, excluding income taxes 994 895 794
Advances and payments on account to vendors 190 216 169
Prepaid expenses 513 430 495
Other receivables 564 538 529
Total 3,208 2,868 2,860
(b) See Note 14.
(c) See Note 23.
14. CURRENT AVAILABLE FOR SALE FINANCIAL ASSETS

The net value of current available for sale financial assets changed as follows during the periods presented:
As of January 1 666 515 515
Acquisitions - 311 191

Disposals at net realized value - (164) (58)
Changes in market value (a) 122 3 79
Changes in the scope of consolidation - - -
Translation adjustment - 1 1
Reclassifications - - -
As of period-end 788 666 728
Of which: Historical cost of current available for sale financial assets 575 576 505
(a) Recognized within “Net financial income/(expense)”.
15. CASH AND CHANGE IN CASH

15.1 Cash and cash equivalents
Term deposits (less than 3 months) 277 654 550

SICAV and FCP funds 122 192 409
Ordinary bank accounts 3,600 3,764 3,263
Cash and cash equivalents per balance sheet 3,999 4,610 4,222

The reconciliation between cash and cash equivalents as shown in the balance sheet and net cash and cash equivalents appearing
in the cash flow statement is as follows:
Cash and cash equivalents 3,999 4,610 4,222

Bank overdrafts (148) (197) (169)
Net cash and cash equivalents per cash flow statement 3,851 4,413 4,053
15.2 Change in working capital
The change in working capital breaks down as follows for the periods presented:
Change in inventories and work in progress 11 (1,210) (1,722) (1,038)

Change in trade accounts receivable 12 285 (179) 304
Change in balance of amounts owed to customers (31) 8 (22)
Change in trade accounts payable 22.1 (159) 715 35
Change in other receivables and payables (758) 91 (602)
Change in working capital (a) (1,873) (1,087) (1,323)
(a) Increase/(Decrease) in cash and cash equivalents.
15.3 Operating investments
Operating investments comprise the following elements for the periods presented:
Purchase of intangible assets 3 (201) (537) (198)

Purchase of property, plant and equipment 6 (1,117) (2,590) (946)
Change in accounts payable related to fixed asset purchases (62) 137 (47)
Initial direct costs (43) - -
Net cash used in purchases of fixed assets (1,423) (2,990) (1,191)

Net cash from fixed asset disposals 16 10 5
Guarantee deposits paid and other cash flows
related to operating investments (16) (58) (18)
Operating investments (b)

(1,423) (3,038) (1,204)
(b) Increase/(Decrease) in cash and cash equivalents.
15.4 Interim and final dividends paid and other transactions related to equity
Interim and final dividends paid comprise the following elements for the periods presented:
Interim and final dividends paid by LVMH SE (2,012) (2,715) (1,709)

Interim and final dividends paid to minority interests in consolidated subsidiaries (334) (339) (287)
Tax paid related to interim and final dividends paid (66) (36) (43)
Interim and final dividends paid (2,412) (3,090) (2,039)

Other transactions related to equity comprise the following elements for the periods presented:
Capital increases of LVMH SE 16.2 21 49 49

Capital increase in subsidiaries 45 41 16
Acquisition and disposals of LVMH treasury shares 16.3 16 (295) (88)
Other equity-related transactions 82 (205) (23)
16. EQUITY
16.1 Equity
Share capital 16.2 152 152 152

Share premium account 16.2 2,319 2,298 2,332
LVMH shares 16.3 (411) (421) (279)
Cumulative translation adjustment 16.5 675 573 451
Revaluation reserves 854 875 867
Other reserves 26,821 22,462 23,463
Equity, Group share 33,678 32,293 29,990
16.2 Share capital and share premium account
As of June 30, 2019, the share capital consisted of 505,431,285 fully During the six-month period, 403,946 shares were issued following
paid-up shares (505,029,495 shares as of December 31, 2018 and the exercise of share subscription options, which resulted in
505,788,034 as of June 30, 2018), with a par value of 0.30 euros an increase in the share capital and share premium account of
per share, including 230,051,242 shares with double voting rights 21 million euros; 2,156 shares were retired.
(231,834,011 as of December 31, 2018 and 230,051,242 as of
June 30, 2018). Double voting rights are attached to registered
shares held for more than three years.
16.3 LVMH treasury shares
The portfolio of LVMH treasury shares is allocated as follows:
Number Amount Amount Amount
Share subscription option plans 411,450 20 20 54

Bonus share plans 1,337,476 301 302 193
Shares held for stock option and similar plans (a) 1,748,926 321 322 247
Liquidity contract 44,000 16 25 32

Shares pending retirement 270,000 74 74 -
LVMH treasury shares 2,062,926 411 421 279
(a) See Note 17 regarding stock option and similar plans.

The market value of LVMH shares held under the liquidity contract as of June 30, 2019 amounted to 16 million euros.
The portfolio movements of LVMH treasury shares during the six-month period were as follows:
(Number of shares or EUR millions) Number Amount Impact on cash
As of December 31, 2018 2,135,404 421
Share purchases (a)

226,781 69 (69)
Vested bonus shares (17,322) (1) -
Retirement of shares (2,156) - -
Disposals at net realized value (a) (279,781) (85) 85
Gain/(loss) on disposal - 7 -
As of June 30, 2019 2,062,926 411 16
(a) Purchases and sales of LVMH shares mainly related to the management of the liquidity contract.
16.4 Dividends paid by the parent company LVMH SE
Interim dividend for the current fiscal year (2018: 2.00 euros) - 1,010 -
Impact of treasury shares - (4) -
Gross amount disbursed for the fiscal year - 1,006 -
Final dividend for the previous fiscal year (2018: 4.00 euros; 2017: 3.40 euros) 2,020 1,717 1,717
Impact of treasury shares (8) (8) (8)
Gross amount disbursed for the previous fiscal year 2,012 1,709 1,709
Total gross amount disbursed during the period (a) 2,012 2,715 1,709
(a) Excluding the impact of tax regulations applicable to the recipient.
The final dividend for fiscal year 2018 was distributed on April 29, At its meeting of July 24, 2019, the Board of Directors approved
2019 in accordance with the resolutions of the Shareholders’ the payment on December 10, 2019, of an interim dividend
Meeting of April 18, 2019. of 2.20 euros per share for fiscal year 2019.
16.5 Cumulative translation adjustment
The change in “Cumulative translation adjustment” recognized within “Equity, Group share”, net of hedging effects of net assets
denominated in foreign currency, breaks down as follows by currency:
(EUR millions) June 30, 2019 Change Dec. 31, 2018 June 30, 2018
US dollar 322 29 293 236

Swiss franc 680 48 632 552
Japanese yen 123 14 109 93
Hong Kong dollar 364 10 354 340
Pound sterling (112) 3 (115) (108)
Other currencies (244) 6 (250) (227)
Foreign currency net investment hedges (a) (458) (8) (450) (435)
Total, Group share 675 102 573 451
(a) Including: -143 million euros with respect to the US dollar (-141 million euros as of December 31, 2018 and -137 million euros as of June 30, 2018), -118 million euros with respect
to the Hong Kong dollar (-117 million euros as of December 31, 2018 and as of June 30, 2018) and -200 million euros with respect to the Swiss franc (-193 million euros as of
December 31, 2018 and -184 million euros as of June 30, 2018). These amounts include the tax impact.

17. STOCK OPTION AND SIMILAR PLANS

17.1 Share subscription option plans
The number of unexercised share subscription options and the weighted average exercise price changed as follows during the
periods presented:
June 30, 2019 Dec. 31, 2018 June 30, 2018
Number Weighted average Number Weighted average Number Weighted average

exercise price exercise price exercise price
(EUR) (EUR) (EUR)
Share subscription options

outstanding as of January 1 411,088 50.86 1,180,692 59.56 1,180,692 59.56
Options expired (7,142) 50.86 (6,753) 63.98 (6,252) 65.04

Options exercised (403,946) 50.86 (762,851) 64.21 (760,695) 64.24
Share subscription options

outstanding as of period-end - - 411,088 50.86 413,745 50.86
17.2 Bonus share plans
The number of non-vested shares awarded changed as follows during the periods presented:
(number of shares) June 30, 2019 Dec. 31, 2018 June 30, 2018
Non-vested shares as of January 1 1,351,978 1,395,351 1,395,351
Provisional allocations for the period - 462,281 452,804

Shares vested during the period (17,322) (459,741) (93,156)
Shares expired during the period (8,678) (45,913) (20,470)
Non-vested shares as of period-end 1,325,978 1,351,978 1,734,529
Vested share allocations were settled in existing shares held.
17.3 Expense for the period
Expense for the period for share subscription option and bonus share plans 36 82 40
No new stock option or similar plan were set up during the half-year period.

18. MINORITY INTERESTS
As of January 1 1,664 1,408 1,408
Minority interests’ share of net profit 337 636 288

Dividends paid to minority interests (360) (345) (287)
Impact of changes in control of consolidated entities 2 41 (2)
Impact of acquisition and disposal of minority interests’ shares 2 (19) (14)
Capital increases subscribed by minority interests 49 50 25
Minority interests’ share in gains and losses recognized in equity 1 45 15
Minority interests’ share in stock option plan expenses 2 4 2
Impact of changes in minority interests with purchase commitments 15 (156) 57
As of period-end 1,712 1,664 1,492
The change in minority interests’ share in gains and losses recognized in equity breaks down as follows:
(EUR millions) Cumulative Hedges of future Vineyard land Revaluation Total share of
translation foreign currency adjustments minority interests
adjustment cash flows and of employee
cost of hedging benefits
As of December 31, 2018 115 (14) 260 (33) 328
Changes during the period 4 2 - (5) 1
As of June 30, 2019 119 (12) 260 (38) 329
Minority interests are composed primarily of Diageo’s 34% stake Dividends paid to Diageo during the first half of 2019 in respect
in Moët Hennessy SAS and Moët Hennessy International SAS of fiscal year 2018 amounted to 178 million euros. Net profit
(“Moët Hennessy”) and the 39% stake held by Mari-Cha Group attributable to Diageo for the first half of 2019 was 166 million
Ltd (formerly Search Investment Group Ltd) in DFS. Since the euros, and its share in accumulated minority interests (before
34% stake held by Diageo in Moët Hennessy is subject to a the accounting impact of the purchase commitment granted to
purchase commitment, it is reclassified at the period-end within Diageo) came to 3,206 million euros as of June 30, 2019.
“Purchase commitments for minority interests’ shares” under
Dividends paid to Mari-Cha Group Ltd during the first half of
“Other non-current liabilities” and is therefore excluded from
2019 in respect of fiscal year 2018 amounted to 99 million euros.
the total amount of minority interests at the period-end. See
Net profit attributable to Mari-Cha Group Ltd for the first half
Notes 21 and 1.12 to the 2018 consolidated financial statements.
of 2019 was 100 million euros, and its share in accumulated
minority interests as of June 30, 2019 came to 1,428 million euros.

19. BORROWINGS
19.1 Net financial debt
Bonds and Euro Medium-Term Notes (EMTNs) 5,360 5,593 6,287

Finance leases - 315 303
Bank borrowings 228 97 102
Long-term borrowings 5,588 6,005 6,692
Bonds and Euro Medium-Term Notes (EMTNs) 1,950 996 1,551

Commercial paper 5,077 3,174 3,290
Bank overdrafts 148 197 169
Other short-term borrowings 715 660 649
Short-term borrowings 7,890 5,027 5,659
Gross borrowings 13,478 11,032 12,351
Interest rate risk derivatives (34) (16) (33)

Foreign exchange risk derivatives 154 146 112
Gross borrowings after derivatives 13,598 11,162 12,430
Current available for sale financial assets (b)

(788) (666) (728)
Non-current available for sale financial assets used to hedge financial debt (127) (125) (121)
Cash and cash equivalents (c) (3,999) (4,610) (4,222)
Net financial debt 8,684 5,761 7,359
Belmond shares (presented within “Non-current available for sale financial assets”) (d) - (274) -
Adjusted net financial debt, excluding the acquisition of Belmond shares 8,684 5,487 7,359
(b) See Note 14.
(c) See Note 15.1.
(d) See Note 8 to the 2018 consolidated financial statements.
The change in net financial debt during the period is as follows:
(EUR millions) Dec. 31, Impact of Jan. 1, 2019, Impact Translation Impact Changes in Reclas- June 30,
2018 changes in after on cash (b) adjust- of market the scope sifications 2019
accounting restatement ment value of conso- and Other
standards (a) changes lidation
Long-term borrowings 6,005 (315) 5,690 466 1 16 685 (1,270) 5,588

Short-term borrowings 5,027 (26) 5,001 1,577 17 2 3 1,290 7,890
Gross borrowings 11,032 (341) 10,691 2,043 18 18 688 20 13,478
Derivatives 130 - 130 13 - (17) - (6) 120
Gross borrowings
after derivatives 11,162 (341) 10,821 2,056 18 1 688 14 13,598
(b) Including a positive impact of 2,988 million euros in respect of proceeds from borrowings and a negative impact of 956 million euros in respect of repayment of borrowings.

Changes in the scope of consolidation were related to the During the half-year period, LVMH repaid the 300 million euros
acquisition of Belmond. The bank borrowings on Belmond’s bond issued in 2014.
balance sheet at the acquisition date were repaid in the amount
Net financial debt does not include purchase commitments for
of 560 million euros. See Note 2.
minority interests (see Note 21) or lease liabilities (see Note 7).
In April 2019, LVMH completed two fixed-rate bond issues
totaling 1 billion euros, comprised of 300 million euros in bonds
maturing in 2021 and 700 million euros in bonds maturing
in 2023.
19.2 Analysis of gross borrowings by payment date and by type of interest rate
(EUR millions) Gross borrowings Impact of derivatives Gross borrowings

after derivatives
Fixed Floating Total Fixed Floating Total Fixed Floating Total

rate rate rate rate rate rate
Maturity: June 30, 2020 7,668 223 7,891 (113) 251 138 7,555 474 8,029
June 30, 2021 1,607 7 1,614 (415) 394 (21) 1,192 401 1,593
June 30, 2022 2,063 - 2,063 (1,301) 1,296 (5) 762 1,296 2,058
June 30, 2023 698 - 698 17 - 17 715 - 715
June 30, 2024 1,206 3 1,209 (301) 292 (9) 905 295 1,200
June 30, 2025 - - - - - - - - -
Thereafter - 3 3 - - - - 3 3
Total 13,242 236 13,478 (2,113) 2,233 120 11,129 2,469 13,598
See Note 23.3 regarding the market value of interest rate risk derivatives.
19.3 Analysis of gross borrowings by currency after derivatives
Euro 8,541 6,445 7,637

US dollar 4,148 3,277 3,596
Swiss franc - - 171
Japanese yen 587 662 601
Other currencies 322 778 425
Total 13,598 11,162 12,430
The purpose of foreign currency borrowings is to finance the development of the Group’s activities outside the eurozone, as well as
the Group’s assets denominated in foreign currency.

20. PROVISIONS AND OTHER NON-CURRENT LIABILITIES

Non-current provisions and other liabilities comprise the following:
Non-current provisions 1,400 1,245 1,305

Uncertain tax positions 1,204 1,185 1,257
Derivatives 587 283 386
Employee profit sharing 83 89 78
Other liabilities 373 386 355
Non-current provisions and other liabilities 3,647 3,188 3,381
Provisions concern the following types of contingencies and losses:
Provisions for pensions, medical costs and similar commitments 695 605 639
Provisions for contingencies and losses 705 640 666
Non-current provisions 1,400 1,245 1,305
Provisions for pensions, medical costs and similar commitments 6 7 4

Provisions for contingencies and losses 319 362 343
Current provisions 325 369 347
Total 1,725 1,614 1,652
Changes in provisions were as follows during the half-year period:
(EUR millions) Dec. 31, Increases Amounts Amounts Changes in Other (a) June 30,
2018 used released the scope of 2019
consolidation
Provisions for pensions, medical

costs and similar commitments 612 46 (36) - - 79 701
Provisions for contingencies and losses 1,002 153 (84) (36) - (11) 1,024
Total 1,614 199 (120) (36) - (68) 1,725
(a) Including the impact of translation adjustment and change in revaluation reserves.
Provisions for contingencies and losses correspond to the estimate Non-current liabilities related to uncertain tax positions included
of the impact on assets and liabilities of risks, disputes (see Note 30), an estimate of the risks, disputes and actual or probable litigation
or actual or probable litigation arising from the Group’s related to the income tax computation. The Group’s entities in
activities; such activities are carried out worldwide, within what France and abroad may be subject to tax inspections and, in
is often an imprecise regulatory framework that is different certain cases, to rectification claims from local administrations.
for each country, changes over time and applies to areas ranging A liability is recognized for these rectification claims, together
from product composition and packaging to relations with with any uncertain tax positions that have been identified but
the Group’s partners (distributors, suppliers, shareholders in not yet officially notified, the amount of which is regularly
subsidiaries, etc.). reviewed in accordance with the criteria of the application of
IFRIC 23 Uncertainty over Income Tax Treatment.

21. PURCHASE COMMITMENTS FOR MINORITY INTERESTS’ SHARES

As of June 30, 2019, purchase commitments for minority interests’ Moët Hennessy SAS and Moët Hennessy International SAS
shares mainly include the put option granted by LVMH to (“Moët Hennessy”) hold the LVMH group’s investments in the
Diageo plc for its 34% share in Moët Hennessy, with six months’ Wines & Spirits businesses, with the exception of the equity
advance notice and for 80% of the fair value of Moët Hennessy investments in Château d’Yquem, Château Cheval Blanc, Clos des
at the exercise date of the option. This option may be exercised Lambrays and Colgin Cellars, and excluding certain champagne
at any time subject to a six-month notice period. The fair value vineyards.
of this commitment was calculated by applying the share price
Purchase commitments for minority interests’ shares also include
multiples of comparable firms to Moët Hennessy’s consolidated
commitments relating to minority shareholders in Loro Piana
operating results.
(15%), Rimowa (20%), and distribution subsidiaries in various
countries, mainly in the Middle East.
22. TRADE ACCOUNTS PAYABLE AND OTHER CURRENT LIABILITIES

22.1 Trade accounts payable
The change in trade accounts payable for the periods presented breaks down as follows:
As of December 31 5,314 4,539 4,539
Impact of changes in accounting standards (108) - -
As of January 1, after restatement 5,206 4,539 4,539
Change in trade accounts payable (159) 715 35

Changes in amounts owed to customers (31) 8 (22)
Changes in the scope of consolidation 98 7 29
Translation adjustment 36 49 33
Reclassifications 13 (4) (6)
As of period-end 5,163 5,314 4,608
22.2 Current provisions and other liabilities
Current provisions (b) 325 369 347

Derivatives (c) 213 166 79
Employees and social institutions 1,395 1,668 1,291
Employee profit sharing 59 105 57
Taxes other than income taxes 623 685 523
Advances and payments on account from customers 392 398 367
Provision for product returns (d) 316 356 288
Deferred payment for non-current assets 590 646 500
Deferred income 274 273 260
Other liabilities 979 1,288 1,136
Total 5,166 5,954 4,848
(b) See Note 20.
(c) See Note 23.
(d) See Note 1.25 to the 2018 consolidated financial statements.

23. FINANCIAL INSTRUMENTS AND MARKET RISK MANAGEMENT

23.1 Organization of foreign exchange, interest rate and equity market risk management
Financial instruments are mainly used by the Group to hedge The backbone of this organization is an integrated information
risks arising from Group activity and protect its assets. system which allows hedging transactions to be monitored
quickly.
The management of foreign exchange and interest rate risk, in
addition to transactions involving shares and financial instruments, The Group’s hedging strategy is presented to the Audit
is centralized. Committee. Hedging decisions are made according to an
established process that includes regular presentations to the
The Group has implemented a stringent policy and rigorous
Group’s Executive Committee and detailed documentation.
management guidelines to manage, measure, and monitor these
market risks. Counterparties are selected based on their rating and in
accordance with the Group’s risk diversification strategy.
These activities are organized based on a segregation of duties
between risk measurement, hedging (front office), administration
(back office) and financial control.
23.2 Summary of derivatives
Derivatives are recorded in the balance sheet for the amounts and in the captions detailed as follows:
Interest rate risk Assets: non-current 33 23 36

current 14 12 14
Liabilities: non-current (1) (7) (8)
current (12) (12) (9)
23.3 34 16 33
Foreign exchange risk Assets: non-current 103 18 46

current 140 108 131
current (201) (154) (70)
23.4 16 (88) 18
Other risks Assets: non-current 560 216 289

current 5 3 -
current - - -
5 3 -
Total Assets: non-current 10 696 257 371

current 13 159 123 145
Liabilities: non-current 20 (587) (283) (386)
current 22 (213) (166) (79)
55 (69) 51

23.3 Derivatives used to manage interest rate risk
The aim of the Group’s debt management policy is to adapt the debt maturity profile to the characteristics of the assets held,
to contain borrowing costs, and to protect net profit from the impact of significant changes in interest rates.
For these purposes, the Group uses interest rate swaps and options.
Derivatives used to manage interest rate risk outstanding as of June 30, 2019 break down as follows:
(EUR millions) Nominal amounts by maturity Market value (a) (b)
Less than From 1 to More than Total Fair value Not Total
1 year 5 years 5 years hedges allocated
Interest rate swaps,

floating-rate payer 342 1,996 - 2,338 43 - 43
Interest rate swaps,
fixed-rate payer - 343 - 343 - (5) (5)
Foreign currency swaps,
euro-rate payer 92 446 - 538 1 - 1
Foreign currency swaps,
euro-rate receiver 59 132 - 191 (5) - (5)
Total 39 (5) 34
(a) Gain/(Loss).
(b) See Note 1.9 to the 2018 consolidated financial statements regarding the methodology used for market value measurement.
23.4 Derivatives used to manage foreign exchange risk
A significant portion of Group companies’ sales to customers Future foreign currency-denominated cash flows are broken
and to their own retail subsidiaries as well as certain purchases down as part of the budget preparation process and are hedged
are denominated in currencies other than their functional currency; progressively over a period not exceeding one year unless a
the majority of these foreign currency-denominated cash flows longer period is justified by probable commitments. As such,
are intra-Group cash flows. Hedging instruments are used to and according to market trends, identified foreign exchange
reduce the risks arising from the fluctuations of currencies against risks are hedged using forward contracts or options.
the exporting and importing companies’ functional currencies,
The Group may also use appropriate financial instruments to
and are allocated to either accounts receivable or accounts
hedge the net worth of subsidiaries outside the eurozone, in order
payable (fair value hedges) for the fiscal year, or to transactions
to limit the impact of foreign currency fluctuations against the
anticipated for future periods (cash flow hedges).
euro on consolidated equity.

Derivatives used to manage foreign exchange risk outstanding as of June 30, 2019 break down as follows:
(EUR millions) Nominal amounts by fiscal year of allocation (a) Market value (b) (c)
2019 2020 Thereafter Total Future Fair value Foreign Not Total
cash flow hedges currency net allocated
hedges investment
hedges
Options purchased
Put USD 230 - - 230 1 1 - - 2
Put JPY - 4 - 4 - - - - -
Put GBP 2 - - 2 - - - - -
Other - - - - - - - - -
232 4 - 236 1 1 - - 2
Collars
Written USD 3,295 4,180 - 7,475 106 (5) - - 101
Written JPY 695 1,053 - 1,748 21 - - - 21
Written GBP 250 227 - 477 16 1 - - 17
Written HKD 362 428 - 790 11 - - - 11
Written CNY - 302 - 302 10 - - - 10
4,602 6,190 - 10,792 164 (4) - - 160
Forward exchange contracts

USD (50) (77) - (127) 1 1 - - 2
HKD (3) - - (3) - - - - -
JPY 16 - - 16 - - - - -
CHF (78) - - (78) 3 1 - - 4
RUB 23 - - 23 - (1) - - (1)
CNY - - - - - - - - -
GBP 51 9 - 60 2 - - - 2
Other 143 - - 143 - - - - -
102 (68) - 34 6 1 - - 7
Foreign exchange swaps

USD 2,009 439 (527) 1,921 - (105) 2 - (103)
GBP 1,031 - - 1,031 - (4) - - (4)
JPY 285 - - 285 - (19) - - (19)
CNY (164) 19 11 (134) - (3) - - (3)
Other (500) - - (500) - (13) (11) - (24)
2,661 458 (516) 2,603 - (144) (9) - (153)
Total 7,597 6,584 (516) 13,665 171 (146) (9) - 16
(a) Sale/(Purchase).
(b) See Note 1.9 to the 2018 consolidated financial statements regarding the methodology used for market value measurement.
(c) Gain/(Loss).

24. SEGMENT INFORMATION

The Group’s brands and trade names are organized into six business group for Bvlgari. The Selective Retailing business group
business groups. Four business groups – Wines & Spirits, Fashion comprises the Group’s own- label retailing activities. Other activities
& Leather Goods, Perfumes & Cosmetics, and Watches & and holding companies comprise brands and businesses that
Jewelry – comprise brands dealing with the same category of are not associated with any of the above-mentioned business
products that use similar production and distribution processes. groups, particularly the media division, the Dutch luxury yacht
Information on Louis Vuitton and Bvlgari is presented according maker Royal Van Lent, hotel operations and holding or real
to the brand’s main business, namely the Fashion & Leather Goods estate companies.
business group for Louis Vuitton and the Watches & Jewelry
24.1 Information by business group
First half 2019
(EUR millions) Wines & Fashion & Perfumes & Watches & Selective Other and Eliminations Total
Spirits Leather Cosmetics Jewelry Retailing holding and not
Goods companies allocated (a)
Sales outside the Group 2,471 10,387 2,714 2,066 7,072 372 - 25,082
Intra-Group sales 15 38 522 69 26 8 (678) -
Total revenue 2,486 10,425 3,236 2,135 7,098 380 (678) 25,082
Profit from recurring operations 772 3,248 387 357 714 (179) (4) 5,295
Other operating income
and expenses 3 - (8) (8) - (41) - (54)
Depreciation, amortization
and impairment expense (87) (882) (207) (227) (663) (106) - (2,172)
Of which: Right-of-use assets (15) (529) (68) (106) (414) (39) - (1,171)
Other (72) (353) (139) (121) (249) (67) - (1,001)
Intangible assets and goodwill (b) 6,895 13,069 1,381 5,684 3,420 2,850 - 33,299
Right-of-use assets 123 5,171 481 1,044 4,900 845 (426) 12,138
Property, plant and equipment 2,913 3,895 694 576 1,820 6,336 (9) 16,225
Inventories 5,666 2,739 931 1,831 2,716 43 (365) 13,561
Other operating assets (c) 1,156 1,635 1,407 761 868 1,310 8,564 15,701
Total assets 16,753 26,509 4,894 9,896 13,724 11,384 7,764 90,924
Equity - - - - - - 35,390 35,390

Lease liabilities 127 5,081 469 993 5,019 910 (431) 12,168
Other liabilities (d) 1,330 4,233 1,900 1,050 2,593 1,579 30,681 43,366
Total liabilities and equity 1,457 9,314 2,369 2,043 7,612 2,489 65,640 90,924
Operating investments (e)

(112) (544) (171) (142) (276) (176) (2) (1,423)

Fiscal year 2018 (f)
Intra-Group sales 28 66 1,077 111 47 18 (1,347) -
Total revenue 5,143 18,455 6,092 4,123 13,646 714 (1,347) 46,826
Profit from recurring operations 1,629 5,943 676 703 1,382 (270) (60) 10,003
and expenses (3) (10) (16) (4) (5) (88) - (126)
and impairment expense (162) (764) (275) (239) (463) (169) - (2,072)
Of which: Right-of-use assets - - - - - - - -
Other (162) (764) (275) (239) (463) (169) - (2,072)
Intangible assets and goodwill (b) 6,157 13,246 1,406 5,791 3,430 951 - 30,981
Right-of-use assets - - - - - - - -
Inventories 5,471 2,364 842 1,609 2,532 23 (356) 12,485
Other operating assets (c) 1,449 1,596 1,401 721 870 976 8,709 15,722
Total assets 15,948 21,075 4,326 8,697 8,649 7,259 8,346 74,300
Equity - - - - - - 33,957 33,957

Lease liabilities - - - - - - - -

(298) (827) (330) (303) (537) (743) - (3,038)

First half 2018 (f)
Intra-Group sales 14 30 505 61 23 9 (642) -
Total revenue 2,271 8,594 2,877 1,978 6,325 347 (642) 21,750
Profit from recurring operations 726 2,775 364 342 612 (134) (37) 4,648
and expenses - - (12) (1) - (57) - (70)
and impairment expense (75) (355) (130) (112) (221) (92) - (985)
Of which: Right-of-use assets - - - - - - - -
Other (75) (355) (130) (112) (221) (92) - (985)
Intangible assets and goodwill (b) 6,551 13,164 1,291 5,737 3,325 984 - 31,052
Right-of-use assets - - - - - - - -
Inventories 5,320 2,156 793 1,566 2,359 20 (331) 11,883
Other operating assets (c) 1,152 1,300 1,274 694 803 1,113 8,307 14,643
Total assets 15,771 20,320 3,973 8,537 8,179 6,991 7,969 71,740
Equity - - - - - - 31,482 31,482

Lease liabilities - - - - - - - -

(108) (325) (135) (145) (205) (286) - (1,204)
(a) Eliminations correspond to sales between business groups; these generally consist of sales to Selective Retailing from other business groups. Selling prices between the different
business groups correspond to the prices applied in the normal course of business for sales transactions to wholesalers or distributors outside the Group.
(b) Intangible assets and goodwill correspond to the carrying amounts shown in Notes 3 and 4.
(c) Assets not allocated include available for sale financial assets, other financial assets, and current and deferred tax assets.
(d) Liabilities not allocated include financial debt, current and deferred tax liabilities, and liabilities related to purchase commitments for minority interests’ shares.
(e) Increase/(Decrease) in cash and cash equivalents.
(f) The financial statements as of December 31 and June 30, 2018 have not been restated to reflect the application of IFRS 16 Leases. See Note 1.2 regarding the impact of the
24.2 Information by geographic region
Revenue by geographic region of delivery breaks down as follows:
France 2,153 4,491 2,057

Europe (excluding France) 4,338 8,731 3,863
United States 5,784 11,207 5,041
Japan 1,810 3,351 1,554
Asia (excluding Japan) 8,190 13,723 6,739
Other countries 2,807 5,323 2,496
Revenue 25,082 46,826 21,750

Operating investments by geographic region of delivery are as follows:
France 548 1,054 504

Europe (excluding France) 306 539 224
Japan 55 80 39
Asia (excluding Japan) 230 411 141
Other countries 93 189 68
Operating investments 1,423 3,038 1,204
No geographic breakdown of segment assets is provided since a significant portion of these assets consists of brands and goodwill,
which must be analyzed on the basis of the revenue generated by these assets in each region, and not in relation to the region of
their legal ownership.
24.3 Quarterly information
Quarterly revenue by business group breaks down as follows:
Spirits Leather Cosmetics Jewelry Retailing holding
Goods companies
First quarter 1,349 5,111 1,687 1,046 3,510 187 (352) 12,538
Second quarter 1,137 5,314 1,549 1,089 3,588 193 (326) 12,544
Total for first half 2019 2,486 10,425 3,236 2,135 7,098 380 (678) 25,082
Spirits Leather Cosmetics Jewelry Retailing holding
Goods companies
First quarter 1,195 4,270 1,500 959 3,104 161 (335) 10,854
Second quarter 1,076 4,324 1,377 1,019 3,221 186 (307) 10,896
Total for first half 2018 2,271 8,594 2,877 1,978 6,325 347 (642) 21,750
Third quarter 1,294 4,458 1,533 1,043 3,219 173 (341) 11,379
Fourth quarter 1,578 5,403 1,682 1,102 4,102 194 (364) 13,697
Total for second half 2018 2,872 9,861 3,215 2,145 7,321 367 (705) 25,076
Total for 2018 5,143 18,455 6,092 4,123 13,646 714 (1,347) 46,826
25. OTHER OPERATING INCOME AND EXPENSES
Net gains/(losses) on disposals 3 (5) 3

Restructuring costs - 1 -
Transaction costs relating to the acquisition of consolidated companies (4) (10) -
Impairment or amortization of brands, trade names, goodwill and other property (37) (117) (73)
Other items, net (16) 5 -
Other operating income and expenses (54) (126) (70)
Impairment and amortization expenses recorded are mostly for brands and goodwill.

26. NET FINANCIAL INCOME/(EXPENSE)
Borrowing costs (77) (158) (73)

Income from cash, cash equivalents and current available for sale financial assets 29 44 18
Fair value adjustment of borrowings and interest rate hedges (3) (3) (1)
Cost of net financial debt (51) (117) (56)
Interest on lease liabilities (145) - -
Dividends received from non-current available for sale financial assets 1 18 18

Cost of foreign exchange derivatives (102) (160) (68)
Fair value adjustment of available for sale financial assets 101 (108) 95
Other items, net (9) (21) (11)
Other financial income and expenses (9) (271) 34
Net financial income/(expense) (205) (388) (22)
Income from cash, cash equivalents and current available for sale financial assets comprises the following items:
Income from cash and cash equivalents 21 31 13

Income from current available for sale financial assets 8 13 5
Income from cash, cash equivalents and current available for sale financial assets 29 44 18
The cost of foreign exchange derivatives breaks down as follows:
Cost of commercial foreign exchange derivatives (103) (156) (65)

Cost of foreign exchange derivatives related to net investments
denominated in foreign currency 3 3 2
Cost and other items related to other foreign exchange derivatives (2) (7) (5)
Cost of foreign exchange derivatives (102) (160) (68)
27. INCOME TAXES
Current income taxes for the fiscal year (1,556) (2,631) (1,232)
Current income taxes relating to previous fiscal years 5 76 6
Current income taxes (1,551) (2,555) (1,226)
Change in deferred income taxes 90 57 (29)

Impact of changes in tax rates on deferred income taxes 30 (1) (9)
Deferred income taxes 120 56 (38)
Total tax expense per income statement (1,431) (2,499) (1,264)
Tax on items recognized in equity 15 118 110

The effective tax rate is as follows:
Profit before tax 5,036 9,489 4,556

Total income tax expense (1,431) (2,499) (1,264)
Effective tax rate 28.4% 26.3% 27.7%
The effective tax rate used as of June 30 is the forecast effective tax rate for the fiscal year.
The Group’s effective tax rate was 28.4%, up 0.7 points from the first half of 2018.
28. EARNINGS PER SHARE
June 30, 2019 Dec. 31, 2018 June 30, 2018
Net profit, Group share (EUR millions) 3,268 6,354 3,004
Average number of shares outstanding during the fiscal year 505,182,367 505,986,323 506,624,444
Average number of treasury shares owned during the fiscal year (1,571,270) (3,160,862) (3,807,863)
Average number of shares on which the calculation before dilution is based 503,611,097 502,825,461 502,816,581
Basic earnings per share (EUR) 6.49 12.64 5.97
Average number of shares outstanding on which the above calculation is based 503,611,097 502,825,461 502,816,581
Dilutive effect of stock option and bonus share plans 943,627 1,092,679 1,286,090
Other dilutive effects - - -
Average number of shares on which the calculation after dilution is based 504,554,724 503,918,140 504,102,671
Diluted earnings per share (EUR) 6.48 12.61 5.96
29. OFF-BALANCE SHEET COMMITMENTS

The Group’s off-balance sheet commitments, which amounted and 2.0 billion euros following the payment of the acquisition
to 18.2 billion euros as of December 31, 2018, decreased by price for Belmond (see Note 2), included within share purchase
13.5 billion euros in the first half of 2019, including 12.6 billion commitments as of December 31, 2018.
euros resulting from the application of IFRS 16 Leases (see Note 1.2)

30. EXCEPTIONAL EVENTS AND LITIGATION

No significant exceptional events or litigation occurred during the six-month period.
31. RELATED-PARTY TRANSACTIONS

No significant related-party transactions occurred during the six-month period.
32. SUBSEQUENT EVENTS

No significant subsequent events occurred between June 30, 2019 and July 24, 2019, the date at which the financial statements were
approved for publication by the Board of Directors.

STATUTORY AUDITORS’ REVIEW REPORT
ON THE HALF-YEARLY FINANCIAL INFORMATION
To the Shareholders,
In compliance with the assignment entrusted to us by the Shareholder’s Meeting and in accordance with the requirements of Article
L.451-1-2 III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:
• the review of the accompanying condensed half-yearly consolidated financial statements of LVMH Moët Hennessy – Louis Vuitton,
for the period from January 1 to June 30, 2019;
• the verification of the information presented in the half-yearly Management Report.
These condensed half-yearly consolidated financial statements are under your Board of Directors’ responsibility. Our role is to express
a conclusion on these financial statements based on our review.
1. Conclusion on the financial statements
We conducted our review in accordance with professional standards applicable in France. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit conducted in accordance with the professional
standards applicable in France and consequently does not enable us to obtain assurance that the financial statements, taken as a
whole, are free from material misstatements, as we would not become aware of all significant matters that might be identified in an
audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed half-yearly
consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 – standard of the IFRS as
adopted by the European Union applicable to interim financial information.
Without qualifying our conclusion, we draw your attention to the matter set out in Note 1.2 to the condensed half-yearly consolidated
financial statements regarding the effects resulting from the first application of IFRS 16 on lease contracts and IFRIC 23 on uncertainty
over income tax treatments, and changes in the presentation of the balance sheet and cash flow statement.
2. Specific verification
We have also verified the information presented in the half-yearly Management Report on the condensed half-yearly consolidated
financial statements subject to our review.
We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated financial
statements.
Paris-La Défense, July 24, 2019

The Statutory Auditors
French original signed by
MAZARS ERNST & YOUNG Audit
Loïc Wallaert Isabelle Sapet Gilles Cohen Patrick Vincent-Genod
This is a translation into English of the statutory auditors' review report on the half-yearly financial information issued in French and is provided
solely for the convenience of English-speaking users. This report includes information relating to the specific verification of information given in
the Group’s half-yearly management report.
This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.

STATEMENT BY THE COMPANY OFFICER
RESPONSIBLE FOR THE INTERIM FINANCIAL REPORT
We declare that, to the best of our knowledge, the condensed interim consolidated financial statements have been prepared in
accordance with applicable accounting standards and provide a true and fair view of the assets, liabilities, financial position and
profit or loss of the parent company and of all consolidated companies, and that the interim management report presented on page
6 gives a true and fair picture of the significant events during the first six months of the fiscal year and their impact on the financial
statements, and the main related party transactions, as well as a description of the main risks and uncertainties for the remaining six
months of the fiscal year.
Paris, July 24, 2019
Under delegation from the Chairman and Chief Executive Officer
Jean-Jacques GUIONY
Chief Financial Officer, Member of the Executive Committee

Design and production: Agence Marc Praquin
For any information:
LVMH, 22 avenue Montaigne - 75008 Paris
Tel. +33 1 44 13 22 22 - Fax +33 1 44 13 21 19
www.lvmh.com

LVMH 2019 First Half Financial Report

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LVMH 2019 First Half Financial Report

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TRANSLATION OF THE FRENCH

INTERIM FINANCIAL REPORT

SIX-MONTH PERIOD ENDED JUNE 30, 2019

EXECUTIVE AND SUPERVISORY BODIES; STATUTORY AUDITORS AS OF JUNE 30, 2019 1

BUSINESS REVIEW AND COMMENTS ON THE HALF-YEAR CONSOLIDATED

COMMENTS ON THE CONSOLIDATED INCOME STATEMENT 6

CONDENSED HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS 21

CONSOLIDATED INCOME STATEMENT 22

STATUTORY AUDITORS’ REVIEW REPORT ON THE HALF-YEARLY FINANCIAL INFORMATION 58

Board of Executive Performance

Bernard Arnault Bernard Arnault Yves-Thibault de Silguy (a)

General Secretary Statutory Auditors

(a) Independent Director.

Interim Financial Report - Six-month period ended June 30, 2019 1

Total 25,082 21,750 +15% +12%

Revenue by geographic region of delivery Revenue by invoicing currency

Japan 7% Japanese yen 7%

Asia (excl. Japan) 33% Hong Kong dollar 6%

Other markets 11% Other currencies 37%

Total 5,295 10,003 4,648

Stores Stores by geographic region

06/30/18 12/31/18 06/30/19 461

2 Interim Financial Report - Six-month period ended June 30, 2019

6,990 6,354 12.64

3,292 3,605 3,004 3,268 5.97 6.49

Net cash from Operating free

8,490 3,038 5,452

Equity and Net financial

6.00 8,684 33,957 35,390

Interim Financial Report - Six-month period ended June 30, 2019 3

SHARE CAPITAL AND VOTING RIGHTS

Number Number of % of capital % of voting

Arnault Family Group 238,393,953 465,628,350 47.17% 63.32%

Total 505,431,285 735,395,453 100.00% 100.00%

4 Interim Financial Report - Six-month period ended June 30, 2019

1. COMMENTS ON THE CONSOLIDATED INCOME STATEMENT 6

Interim Financial Report - Six-month period ended June 30, 2019 5

1. COMMENTS ON THE CONSOLIDATED INCOME STATEMENT

Change in revenue per quarter Revenue by geographic region of delivery

Total 100 100 100

6 Interim Financial Report - Six-month period ended June 30, 2019

1.2 Profit from recurring operations

The geographic breakdown of stores is as follows:

Interim Financial Report - Six-month period ended June 30, 2019 7

Change in profit from recurring operations Fashion & Leather Goods

On a constant consolidation scope and currency basis, the

8 Interim Financial Report - Six-month period ended June 30, 2019

1.3 Other income statement items

- interest on lease liabilities recognized as part of the initial

Interim Financial Report - Six-month period ended June 30, 2019 9

2. WINES & SPIRITS

10 Interim Financial Report - Six-month period ended June 30, 2019

3. FASHION & LEATHER GOODS

Interim Financial Report - Six-month period ended June 30, 2019 11

12 Interim Financial Report - Six-month period ended June 30, 2019

4. PERFUMES & COSMETICS

Interim Financial Report - Six-month period ended June 30, 2019 13

5. WATCHES & JEWELRY

14 Interim Financial Report - Six-month period ended June 30, 2019

and events centered on sports and culture. Hublot continued to Outlook

Interim Financial Report - Six-month period ended June 30, 2019 15

7. COMMENTS ON THE CONSOLIDATED BALANCE SHEET

Intangible assets 33,299 30,981 2,318 Equity 35,390 33,957 1,433