Good morning. Ladies and gentlemen, good morning. I'd like to welcome you to this shareholders meeting of LVMH. I'd like to call the meeting to order. The scrutineers will be, on the one hand, Financier Jean Goujon, represented by Mr.
Florent Olivier and Group Arnault, represented by Mr. Neves Colabazier. Secretary of the Committee will be Mr. Bernard Kuhn, who's the Chief Legal Officer of the group. We're going to check that the quorum has been reached.
That indeed appears to be the case. All the legal documents have been submitted to your attention as per law and the written questions will be addressed before we have Q and A. Mr. Bernard Kuhn will come to those later on. Also inform you of the presence of an officer of the court to ensure the smooth running of the meeting and the agenda for today's meeting as well as the resolutions were sent to you.
This shareholders meeting was preceded by a survey to determine what your expectations are. There's a clip on that that we'll see shortly and the legal documents were made available to you. Now before handing over to Mr. Guillen, I'd just like to recall that the earnings, the results that we will be approving for 2018 mark a new record for your group. Revenue, euros 47,000,000,000 profit from recurring operation exceeding €10,000,000,000 free cash flow €5,500,000,000 and a debt to equity ratio of 16%.
Mr. Guirgny, Chief Financial Officer will give you more details on these figures.
Yes. Madam, is it Monsieur, Bonjour. Good morning, ladies and gentlemen. A few words about the performance for 2018, the beginning of 2019 as well. First, about sales.
We have several slides on the sales. The first slide is a little bit complicated, but it is very important because you have an exact picture of what happened in 2018. 1 quarter after the next. You can see in dark blue that organic growth without scope effects or foreign exchange effects was up 11%, 12% in Q in H1 and 10% in H2, very much the same trend. 11% in organic growth is a pretty good trend compared with previous years.
So we are on track looking at strong growth. Light blue, you have minus 8% in the ForEx effect, so a negative effect negative currency effect in H1, which was neutralized in H2, only minus 1% and some improvement because of consolidation with Dior Couture, which was consolidated in H at the end of H1. So there was an additional consolidation effect felt in H2 in H1, I beg your pardon, 2018. So if you look at the sales themselves In Q1 of this year, we have pretty much the same thing as last year. You have an increase in 11%, same as we had last year for the whole of the year.
There's no scope effect because now the consolidation of Dior is completed. It is part of LVMH. The currency effect is 5% positive, 5% effect currency effect. There was an improvement compared with the same period last year where we had a negative situation. The dollar was 1.14 whereas it had been 1.19 last year, so positive currency effect.
So sales were up 16% overall and organic growth 11%. So we're still looking at a double digit growth figure. Back to 2018, now the distribution of revenue, pretty much the same distribution year on year. We have roughly a quarter of our sales in Europe, 29 percent, a quarter in the U. S.
25% and Asia accounts for about a third of the sales and the rest is distributed between the Middle East and South America. The U. S. Came down because of currency effects again, but by and large, these are pretty much the same proportions. If you look at the geographic areas, therefore, in terms of variations rather than looking at static figures, Last year, 2 regions were buoyant: Asia plus 15%.
And you have to add the fact that we pulled out of Hong Kong where we were in 2017 and not in 2018. That cost us 5 to 6 percentage points in growth. So not including Hong Kong, we'd be looking at almost 20% or 21% growth in Asia. Japan, 15% growth and that's good news because in the beginning of 2010s, this was under pressure. And so, plus 15% both from domestic customers, but also tourists.
And so, this is a very positive trend. The U. S. Stable, indeed, still 8% growth and we're still almost double digit growth. And that's the sales performance we've had for about 10 years or so.
And even towards the end of the year, in the Selective Retailing, there was a slight slowdown. Well, that's because of the advertising expenses were not exactly the same period as last year, hence a slight slowdown. But in Europe, we have not just customers, but also tourists from Asia and some from the U. S. We are still looking at a 7% at 7% growth in Europe.
If you look at the last slide on revenue, just looking at the different businesses, we can see that there was double growth mostly. To start with the Fashion and Leather Goods 15%. That does not include the full year consolidation of Dior. So this does not include the Dior effect, which will not happen again, of course, because it's completely perfumes cosmetics 12%. While these are good numbers considering the tough competition.
Selective retailing restated for Hong Kong 6% would be in fact almost 12% or 13%. So four out of 5 business areas are enjoying double digit growth and Wides and Spirits up 5%. There was a deliberate slowdown at the end of the year because we want to keep some stock for the beginning of next year, especially for Asia. Now looking at the income statement proper, not revenue, here we're looking no, this is denominated in euros. Gross margin was up 12%, slightly more than sales than revenue at 66.6 percent of revenue, so up 3% compared to last year.
Of course, marketing expenses and G and A were up more or less in line with growth in revenue. And that meant that profit from recurring operations were up 21%. That's our main indicator. And as Mr. Arnaud just said, we're past the €10,000,000,000 mark for the first time.
Operating other operating income expenses are down. Mostly, it's the depreciation of intangibles. So that is down. Financial income was degraded well. Last year, it's a comparison basis.
Last year in 2017, we had favorable results on the financial portfolio. Now the portfolio remained healthy, but we didn't have the favorable effect of appreciation that we had in 2017. So on paper, it looks like there's a downturn. But the net income, which is a net profit, which is essential in determining our dividend policy, that was up 18% with the net profit group share of net profit in line with growth both of profit from recurring operations and revenue. And this is, of course, a historic record, both net profit and indeed revenue and also profit from recurring operations.
Now, if we look at the distribution the breakdown rather of profit from recurring operations, you have a couple of very high figures. Fashion and Leather Goods up 21% in profits from recurring operations. There's some effect from Dior consolidation. But even without that, we were almost 20%. Perfumes and Cosmetics, the growth was faster than sales in denominated in euro.
Profit margin was improved. Watches and Jewelry 20 percent, euros 200,000,000 in absolute numbers, huge improvement. And selective retailing, especially DFS, experienced a significant improvement in profit margin. Wines and spirits may not look as impressive, but still sales in euros were stable. And in spite of that, that business was capable of increasing its profitability by 5%.
One slide again on profit from recurring operations. At the last slide about that, that so you have it is known the monkey bridge here. The first block is the structure impact, up €151,000,000 That's because we had Dior in H1 2018. The other effect is the currency effect. The numbers look good, but and easy to achieve, but we had significant headwind in terms of currencies.
That cost us as much as €439,000,000 So had it not been for the currency effect, we would have generated an additional €439,000,000 So if you look at organic growth, it means that our operational people were able to generate an additional €2,000,000,000 in profit. Part of it was absorbed by currencies, but still from €8,200,000,000 we are right at €10,000,000,000 in profit. Regarding the balance sheet, the structure is pretty much the same. Equity accounts for about half our liabilities. Net financial debt, I will be back I will detail in a second.
We had credit lines of about €4,000,000,000 that have not been drawn and that will mean we will be able to acquire Belmond. Belmond was signed at the end of last year. So not much to say about the balance sheet. But if you look at the available the free cash flow and the net debt, debt dark blue block is down. We recorded €1,700,000,000 in a decrease in our debt last year.
How did that come about? We had €5,500,000,000 in free cash flow, €5,452,000,000 So that's what we generated. That was partly absorbed by €3,000,000,000 in dividends and €800,000,000 in various operations, the buyback of LVMH shares. So all in all, €1,700,000,000 which brought our debt down. The gearing that is debt to equity at 16% is a very favorable figure.
And that takes us back to where we were prior to the acquisition of Christian Dior Couture. One final slide, dividends, and we are suggesting a dividend of €6 per share, €2 interim dividend were paid in December 2018. So that's the final dividend of additional €4 significantly up compared to last year about as we try and do half the net profit, the group share of the net profit. Thank you for your attention.
Ladies and gentlemen, we're going to begin as we do every year by showing you a clip with the questions that we have received from our shareholders. Well, you will have noted with the figures that Jean Jacques Guillenie has just presented that 2018 is a record year for the group. So since we have with us many employees of the company, I'd like to thank them and congratulate them because it's thanks to them that we've achieved these results and that the group continues once again to progress in the world and to be way out in front in our area of activity on the world stage. So there are questions that were asked about strategy that I'll come to in a moment. I'd like to briefly review the key 2018 highlights in our various areas.
Let's begin with Wines and Spirits that are expanding strongly and that in 2018 delivered an excellent performance, managed to increase the production and therein lies the prime challenge of our Wines and Spirits companies to produce more in order to meet demand that is increasing in Europe, in the United States and in Asia. In particular, we've been very successful with cognac because as you know the Hennessey brand is the world's leading cognac brand. The direct competitor is a fine company but 4 times smaller. And I think that during the course of this year, the Hennessey brand will without doubt become the leading spirits brand in the world across all categories. Let me add that in 2018, we had an excellent great harvest and so that all goes well for the future and that we've managed to make inroads with the finest qualities.
We were in champagne yesterday and we were able to test before getting down to a meeting. We didn't consume everything. Otherwise, that would have been a bit more difficult.
The 4
latest Dom Perignon vintages and that's quite extraordinary and we don't have enough bottles to meet demand. We also managed to visit, let me mention in passing, the historic Chateau of Muerti Chandon Sorand that was closed for a few years and that has just been renovated. It's a big success and it will be inaugurated in May. So I invite all our shareholders when they're in the Champagne area. I would invite them to visit this iconic chateau where we receive customers, restaurant owners, journalists from around the world to display all the Muetenci champagne products.
So very sustained level of activity. Let's not forget our exceptional whilst Valbrand, Colguin, Ikem that are currently undergoing particularly detailed search on the market. The extraordinary quality since wine is a sector that is expanding strongly and especially high quality wines. We have growing potential and a production limited production capacity. Let me add that we recently launched a wine in China.
We were in China a few weeks ago, which also in China is meeting with considerable success that is vinified with the techniques imported from the Bordeaux region and is set for a great future given the Chinese market to sell to Chinese. It's very appealing and the quality is quite outstanding. Perhaps in a few years, we'll be able to offer it to our shareholders during the cocktail reception. But unfortunately, this year, we don't have enough bottles. Moving now to fashion and leather goods with this extraordinary brand, Louis Vuitton.
Louis Vuitton that delivered an outstanding performance that has met with considerable success with its presentations by Nicolas Ghesquiere, the 3 shows of the year and Virgil Labloh, men's fashion that met with great success with products there again. Adri Vuitton are for many of them already fully sold and that are in demand considerable demand. You know that at Vuitton when the products are successful, which is generally the case, these products are sold. I mean, it's like the bottles of Romani Conti. We sell them at Louis Vuitton prices and after a few hours, a few days, we find them on the net with great markups, marked up prices.
That's not the objective, but it clearly demonstrates the huge desirability of this brand and our ability to create with our iconic designers and the teams Michael Delphine products that year after year have this unique creativity and quality. I could say more about that. But in 2018, there was great success. And for the first time, we won't do this again, but we indicated that revenue topped the €10,000,000,000 mark, which is quite extraordinary performance. Recall that back in 'eighty nine when I arrived because this meeting today is the 30th.
We know now that one has to retire very young, but I'm not sure that's the best way in general either for public finances or for businesses. I always say that when I board a plane, I prefer to see the pilot with gray hair than a young man at the controls, but that's another matter, I believe, that in 'eighty eight, Ouivita generated the equivalent of €500,000,000 in revenue over a few years. We've managed to increase that And we constantly have as our concern to improve our stores that I believe are tremendous. Many of you, I'm sure you visited the Place Vendome store that is iconic. In 2018, we've opened several.
One that's extraordinary that I visited not so long ago, California in South Coast Plaza. You may have visited it. It's wonderful. We opened 1 in Sun Street in London that I Sloane Street in London that I visited 2 days ago, another Shanghai Monaco. 2018 is the 1st full year of Christian Dior Couture at LVMH.
Well, it's a year that's off to a good start, 2018, that's accelerating further into 2019 and there our designer is meeting the clients and the new Director Pietro. They both work well together. They cooperate fully. They're both Italian. And in 2018, we also at Dior have the new King Jones men's wear collection.
That's a big success. I'm sorry, I'm only reviewing things that are working wonderfully. It's easy, but I have few areas that are underperforming. So that's the way it is. We could go into more detail about what has been done.
The iconic toile de jouis of cloth Mr. Dior that he invented back in the launch 1947 of his house that we brought out that was met with considerable success etcetera, etcetera, the other fashion brands. Oh, a key event in 2018 was the arrival of Edi Slimane for the Celine brand that is now integrated in the fashion group in the hands of Cigna Toledaino having managed Dior for several years, now manages several companies, big success. Hedi Slimane, who's an exceptional designer who managed at Dior to achieve global success and he's off to a great start with women's collections, menswear collections. The last show that he organized for women's wear at the Place de la Concorde was sensational and in the stores whereas the products haven't even arrived.
We have waiting lists to buy products. I only hope that we will be able to produce enough items in the other brands. Well, I'll the Givenchy, Louis V, big success to our designer, GW Anderson, is outstanding and has managed to create surprising growth levels in this brand. A word in passing, of course, on Fendi. While we were extremely saddened by Karl's passing, the soul of this house for many years, no doubt the longest cooperation that has ever been between a designer house and Fendi.
He leaves an incredible legacy and in June we'll be organizing a show in Rome as a tribute to Karl with all his designs over the period that he was at Fendi. Luropiano in Italy is growing strongly. So much for fashion and leather goods. Perfumes and cosmetics also in 2018 met with considerable success. First of all, Christian Dior that is experiencing remarkable momentum with several launches.
The Joy perfume, a new advertising campaign, you saw some of the fit with Charlize Tiran for Jadar, the success of the Sauvage fragrance globe. It's one of the first perfumes in the world will be the leading men's fragrance in the world, very remarkable with Johnny Depp in the face in the advert. Makeup also that meeting with considerable success going from strength to strength because it's the leading makeup brand for lipstick in the world. Guerlain, too, a great success with the success of Labe Royal. And I invite all shareholders to test this skincare.
And L'Herogener makeup very good also. A word on Rihanna launched by Sephora with the Fenty brand, the makeup range and all the products, skincare that meeting with almost unexpected success for a brand that we launched from scratch 2 years ago. Watches and jewelry are not lagging behind. You've seen the increase in the figures. Bvlgari has delivered a very fine performance that is gaining market share.
The traditional lines, Serpenti, Octolucia are the women's watches. Octol is the ultra flat watch for men that's quite incredible. It's an automatic watch with a chronometer only a few millimeters thick that has won all the awards in watchmaking in Switzerland just launched a new collection of pure ever in jewelry that's off to a great start. Chaumet has also met with considerable success last year with an exhibition that's wonderful in Tokyo, an exhibition the full history of Chaumet which is the oldest French jewelry house and started back in the days of Napoleon for watchmaking. Hublot is growing strongly and TAG Heuer is going through an innovation phase just launched a if there are golfers in the audience, I'd invite you to take a look where you can find on this connected watch all most of the world's golf courses.
And as you play, you can track your ball, the distance to the tee with a screen on your a 3 d screen on your connected watch allowing you to locate the golf course. I don't know if there are still some to be found because almost all sold out. Selective retailing Sephora. Well, Sephora with Chris has got us used to incredible performance levels in 2018 was no exception. Great performance, hundreds of new stores including the new Nanjing Road in Shanghai that's a big hit in China and the first stores that were transformed to the Sephora banner in Russia.
Le Bon Marche that with Mr. Wagner is expanding and is way out in front in the growth of large department stores in Paris, has launched a digital platform 20 fourseven, Vancatsev that is growing. And DFS, thanks to the excellent performance in Asia, is growing strongly and also Italy in Venice, which now is pretty profitable because the loss making concessions in Hong Kong were abandoned last year. A word to close this section on Belmont, this hotel company that we acquired. The deal was closed this week with hotels that I'm sure you know that are wonderful in Italy, the Venice Hotel, the Cipriano Portofino Hotel that's also astounding, a hotel in Sicily, etcetera, etcetera.
So remarkable hotels probably requiring a little bit of investment, but really consistent with the quest for customer experience that our customers are looking for because our customers want not only the finest products, creative products, but also varying experience. Sometimes it's interesting to go and spend a weekend at the Cipriani on the Orient Express as it is to buy a beautiful dress. So clients are looking at that and they're looking for meaning in their interaction with our brands. I'll lastly say a word about the Foundation Louis Vuitton that continues to organize very successful exhibitions. The latest is the Courtauld exhibition with quite a credible impressionist paintings saying that the Louis Vuittonfrondes with the Van Gogh with the cutoff ear, the equivalent of the Mona Lisa and it's sometimes difficult to see all the paintings given the numbers visiting the show.
And since our foundation that has met with some criticism, but in France there's always criticism whatever you do. Over 5,000,000 visitors to this wonderful foundation. Let's now move to the second part And before turning in greater detail to the strategy, there's a short clip that we'd like to show you. The context is economic cycle running out of steam and then some big macro topics, inequalities linked to the political risk, population aging, climate. So this triptych of the 3 major issues to be addressed going forward.
What we see as an entrepreneur world changing, moving towards authenticity with social environmentalist user world concerned about everything requiring more traceability, understanding what's happening. It's reflected in our businesses, innovation, the authenticity in the products and services tomorrow. The Luxe, as perceived in my generation, is an object that must serve as setting an example and that requires social environmental concern. That's what the younger generation is seeking meaning in products, in their work, in everything they do. It's something that I view as important for the luxury sector to return to something simpler, more authentic.
There's a tension I'd say between 2 major forces, the extension of the middle classes on the that's the big trend that French luxury has ridden successfully. We have to take account of a new sensitivity of millennials post materialism. 1 of the specific challenges for the luxury sector, but the European in particular, is to act as a cultural corridor with Asia, China. As a teacher, I had many Chinese students and what fascinates me is the strong cultural affinity between France and China. I think this is something that isn't fully tapped and their luxury sector really can play a key role so that the world of history and art can come together.
A key point for our future is to build on what nature has done for 3,800,000,000 years, R and D to find the best solutions. It's the most effective factory and it's a great library with loads of answers that we can't have raw materials, ecosystems all that is something that we have to include to enter this bioeconomy and offer answers to these problems. So first of all, on the general economic situation and trends, I think the professor who spoke in the clips are quite right. And then I'd just briefly like to give you my thoughts regarding the group for the future. First of all, say that I'm particularly optimistic for the midterm.
I believe that the broad trends that we've seen, that I have seen with you over the past 30 years will stay with us, but they will evolve these major trends, the emergence of new consumers in the world, the widespread increase of spending power in many countries that accounts for the success of our products in many countries where to start with we had absolutely nothing back in 'eighty nine. We had no stores in China. And since the Chinese market is now the 2nd largest market and so profound changes that are far from over. So this underlying trend will continue with changing aspirations and desires of our customers. Our purpose the key word for the group is to is desire how to create illicit desire for our brands, for our products.
Those desires change and many points I would agree with fully. The customer of our Maisons now seeking products, creativity, but also meaning. And that's a challenge, a key challenge for us. So midterm, I'm optimistic. However, for the long term, I'm very optimistic.
Short or midterm, I believe, as the professor said in the clip, the global outlook cannot remain what it is without going through an upset. We're a situation that I've never known before. We see the financial analysts when I talk to them about this development of interest rates at an all time low, almost negative. Mr. Guoni, we sometimes borrow at negative interest rates that is the banks lend money to us and they pay us for the pleasure of doing that which is quite incredible.
The world is awash with money so there are perhaps people who are a little less astute who will commit errors indeed major errors. Debt levels are at an all time high not in our group but and so in a great many countries what to do with all this indebtedness low interest rates and monetary fluctuations in all directions. All it takes is for a mishap to occur somewhere for all that to end in an economic crisis. And I'm absolutely convinced that we will weather 1 which in no way affects my optimism that over 30 years this company had a market cap of €6,000,000,000 Today, we have a bit more and yet we have weathered some pretty major crises, the oil crisis, 911, 2008, etcetera, but the underlying trends remain. So to summarize on the outlook front, we and I'm very optimistic for the mid and long term, but I believe that we mustn't expect the global situation perhaps not France.
France is always somewhat apart, but the global situation almost euphoric on the economic front to continue like that uninterruptedly for another 10 years. Our values, you know them, you're familiar with them. Our values, creativity, quality, spirit of enterprise and I'd add 1, which is the quest for meaning that we must analyze that we must consider and that we must deliver to our customers and our partners. And it's of prime importance. And that's why I've asked Jean Artus Bertrand to join our Board of Directors.
We need and our customers are asking us to help them find meaning in their interactions with us. What we can say about our strategy aside from those values that I can dwell on, but I don't want to spend too much time on them. We have a long term vision that also accounts for the success of your group is that we have a long term perspective. What I'm interested in when I talk to managers, the executives, Vuitton, Wines and Spirits, Sephora is I want to be sure that in 10 years' time a brand such as Vuitton or Dior will be the most desirable in the world and that's the most interesting. It's not the short term financials.
The short term financials are a consequence of that and must not be an objective. That's why we're successful with what's more the fact that this group aside from its shareholders whom I thank for their support over such a long period and I don't think they have any cause for complaint. But aside from our shareholder partners, one of the key strengths of this group is its family nature because this group is not run by a set of anonymous people. It's run by a family. And when you enter the group, it's a bit like joining a family.
And that's what's important because all these Maisons, these houses that are with us are houses that at the outset are family houses. And what we seek to preserve and in fact certain family members are working with us is this family spirit more than just working for a multinational group that is well organized, I'm sure, but where people change very rapidly and where boards are far more anonymous. We try and keep this a family business and it gives us a long term perspective for the success of our company. So our products, creativity this year once again we'll be having a whole series of innovations in our houses. Yesterday in Champagne, we were shown a whole set of possible innovations as it's still rather secret.
I won't disclose it to you. But at Vuitton there again we have a whole set of products that are going to be launched. The latest is this new suitcase designed by Marc Knusen in softer material that's meeting with considerable success at Christian Dior, a lot of new products. I'm just mentioning passing the incredible success of Christian Dior exhibitions throughout the world. The exhibition at the Victoria and Albert in London had to be extended.
There were so many people wanting to see it. We've never seen that. We're now sought after throughout the world to organize Dior exhibitions. Pietro is delighted because the museums that seek to have us now pay for the pleasure. At Louvre cost us a price, but it's very successful.
This year, Muerta Chandon will be celebrating the 150th anniversary of Brut Imperial loads of innovations at Parfendieur, Bulgari, that will continue to open at least another 100 stores. This year has just opened a flagship store in New York that I visited not so long ago, Hudson Yards, loads of visitors, a big success. So I'll skip. Digitization that will have an increasing impact on our businesses digitization where the sales figures are going from strength to strength year after year. 2nd part of this strategy is quality.
Quality through French know how that's important. We invest in France. €1,000,000,000 invested in France every year. Workshops, many more workshops in France this year. Champagne, Veuve Clifour continuing to build its new facility, the ramp up in cognac of the Pont Neuf facility, the ramp up next to Epernay of Montagu, all that demonstrates that we truly have an eye for quality.
Our growth level is good. It could be better, but we don't want to exceed the point where quality might suffer. So we limit and that explains the fact that a number of products are limited and we're extremely satisfied, very proud to see that our group is rooted in French economic fabric with all the investments and jobs created. Let me run because there again we have some criticism leveled at us. But one of the groups that hires the most people, we hired almost 13,000 people last year.
Let me mention in passing the fact that your group paid €1,000,000,000 in taxes I heard yesterday on television. A politician from the far left or the far right I can't remember one gets lost. But these people they'd be better off paying taxes. Well they should check their facts because we're probably those who pay the most taxes. I don't quite know what he was referring to and journalists ditto will pay taxes etcetera.
So this quest for quality goes hand in hand with the entrepreneurial mindset, the spirit of enterprise and where succeed. One of the keys to the success of our group, We managed to attract the brightest, the finest and brightest and we continue this policy involved in attracting the brightest LVMH was named the most attractive employer in France. That's pretty good. And for the 14th, 13th year in a row, we're number 1 also in the Universome ranking on the appeal, the attractiveness for students, for business school students making LVMH a great place to work. So we truly try to hire youngsters by instilling our spirit of enterprise, promoting them across our business groups.
Since the launch of Veeva Technology, we have a tie up with the technologies and the LVMH start up house was based at Station F, the world's largest incubator, where we show a keen interest. Obviously, we build employee loyalty. 3,600 group managers enjoyed mobility. And today in our management teams we have 42% women because there's scope for further improvement and that will happen. And in 3 years' time, we'll reach gender parity.
Very important also is the transmission of our know how, the excellent Institute of LVMH that trains apprentices every year, 90% graduate with a diploma and are hired by our houses or even outside. And we will seek to create networks to allow these youngsters that we have a great need for and we're going to have to rebuild Notre Dame. The artisan, the craftsmen are in short supply in France and it's crucially important to be able to train them. Earlier, you saw the short clip on the special days met with an extraordinary success no fewer than 200,000 visitors to the Maisons in France and in other European countries. And we show very interested in recruiting young people and all these areas where we can attract young people and increase their motivation because what's quite striking is that many young people have loads of goodwill.
They're very keen but are at a bit of a loss. And when that's the case, they are left to their own devices. And that's why we have a partnership with some underprivileged suburbs such as Clichy Subois where the situation is rather difficult. And we organize training sessions for the youngsters who dropped out of the system and to give them the basic skills to work and then offer them internships and we've started to do that. And I think it's of interest and our shareholders can be rightly proud of this initiative that has a social focus and as well as serving the common good.
So loyalty building of our employees and partners is key, as we mentioned earlier, in order to secure the finest quality for our products. Our key partner for many of our businesses is nature. So the group has particular interest in the environment and everything we can do to contribute to sustainable development, securing the supply chain. 25 years ago, we set up an environmental expertise center. We crossed a new milestone with Life 2020 and very ambitious targets for all our houses, eco design of products aimed at reducing the environmental footprint through the light farm.
Eddy box reduces the environmental footprint of packaging and all this is tracked very closely. We also seek to achieve traceability of our raw materials to set up a responsible supply chain. And this leads to other initiatives such as Leather Working Group tanneries. Five new tanneries were certified in 2018 and our resolve to establish a responsible supply chain can raise the question of the use of leather in certain of our businesses, and we're also working on various research areas here. And we also have a concern for wine growing and viticulture.
And for some of our vineyards, we're looking at the possibility of moving to biodynamics and I'm absolutely determined to go down that road. And lastly, reducing our CO2 emissions and the group is fighting against global warming, climate change and supporting every initiative aimed at reducing global warming. And we've set up an internal carbon fund at the end of 2015 that saw its amount double in 2018. And lastly, environmental efficiency in our sites and stores that we seek to improve every year regarding lighting systems in order to reduce energy consumption and improve the environmental footprint of those stores. I think I've just about finished my presentation.
I could go on at great length, but I want to leave some time for questions. And now I'm going to hand over to the statutory auditors. Thank you. Thank you. Chairman, ladies and gentlemen, shareholders, good morning.
I'm pleased to present on behalf of the statutory auditors the reports that we've drawn up for your attention. Now these reports were made available to you by your company. As per the rules, I suggest I don't read them in full and just focus on the reports pertaining to the resolutions you're asked to vote on. There are 7 reports, 2 on the financial statements, 1 on the related party agreements and committees and 4 special reports related to transactions on share capital. I'll start with our report on the annual financial statements subject to first resolution.
Said reports were drawn up across the French GAAP rules, and we considered that the assessment of securities and the provisions for risks and costs were the key point of the year. In conclusion, we certify the annual financial statements unreservedly. Moving on to the consolidated financial statements. In the second resolution, they've been drawn up under IFRS rules. Our controls took into account the specificities and characteristics of your group regarding the business, the organization, accounting, rules and internal control.
We considered the following issues as being the key audit matters: the allocation of the Christian D'Or Couture purchase price valuation of fixed assets, valuation of inventories and work in progress. Lastly, provision for contingencies and losses. In our opinion, we certify the financial statements without reservation. We draw your attention to Note 1.2 in the annex sets out the impacts pertaining to the application of IFRS 9 that has essentially impacts on the financial impact. IFRS 15 on the booking of revenue, expecting effects of IFRS 16 on leasing contracts coming into force 1st January this year.
Regarding the 4th resolution of your meeting, we issued a report on regulated related party agreements and commitments. The new one that was authorized by your board concerns the amendment to the assistance agreement with Groupe Arnault. The other agreements and commitment authorized in prior years which remained in force in 2018 are also presented in our special report. Lastly, in the extraordinary part of your meeting, we have drawn up 4 reports regarding resolutions that might affect your share capital. These are transactions on capital reduction, the issuance of shares in various securities, maintaining the preferential subscription right, the attribution of subscription options or the issuance of ordinary shares and marketable securities reserved for employees who are members of a company savings plans.
Our reports contain no reports on these transactions that are part of the conditions set out in the French Commercial Code. Thank you for your attention.
Well, before we move on to questions, I would like to ask Bernard Kuhn to read the answers to written questions. Yes. Our company has received questions from 2 shareholders, 1 the Betin organization that owns one share. And the question is the same as that asked in 2018 about the use in leather goods of exotic animal skins from crocodiles and ostriches animal hides. The answer is LVMH is committed to the provisions of the Washington Convention of 1973 and ensures that the breeders and providers of animal hides should abide by the provisions committed to by the group in terms of animal welfare.
Regarding crocodiles, since last year, LVMH has strengthened its provisions, working in particular with A and F International and other players and working with the crocodile specialist group created by the International Union for the Conservation and Nature, UICN, LVMH has introduced an unprecedented process to provide very stringent rules for breeders and manufacturers. And the tannery in Singapore will be certified by the end of the year. Regarding Ostrich Leather, the conclusions of our auditor with the supplier, which accounts with 57% of our supplies. The conclusions are satisfactory, but a new program to bring about new improvements was introduced and working with the South African ostrich business chamber of the MH will ensure that suppliers of ostrich skins will provide a similar process as that provided for leather from crocodiles. LVMH
deploys
the systematically denigrating attitude of Bitan towards LVMH, whereas LVMH is constantly concerned about the welfare of animals at every stage of its life. The second shareholder put questions to us but 4 questions in writing. 1 on the introduction possible introduction of a 10% increase in dividends for shareholders with nominal shares. An increased dividend for shareholders who hold who have been holding shares for more than 2 years is not on the agenda of the Board. The Board has a dynamic dividend policy for its shareholders, dividend being about accounting for about 50% of the group share of net profit.
But as you note, the increase in the value of the share price of 500% in 10 years is liable to encourage shareholder loyalty on the long term? The second question was about the vineyards and the organic farming practices there? The answer is LVMH is committed to an environmentally friendly agriculture and has looked at what are known as biodynamic practices for Chobatblanc, Chateau d'Yquem and the Claude Delambre. Agree that biodynamics can be to some extent applied to Burgundy with a continental climate with small parcels. And so LVMH will indeed be looking at this for the Domaine de Lambre.
It is more vexed issue for the Bordeaux area because of the humidity coming from the ocean as this may bring about the presence of mildew with devastating effect. There would require massive yield of sulfates, pesticides of copper sulfides. And the tests that have been conducted so far are not very conclusive. But at Cheval Blanc and both at and at EKEM, our technical teams are engaged in sustainable agriculture and Viticulture with a view to restricting the footprint on the environment, on people and on the soils by refraining from using weed killers and other toxic agents. But says Mr.
Arnoux, in any case, we will look into the possibility as well. The third question from that shareholder is about the recapitalization of Le Parisien in December 2018. The answer of the Board is as follows. Le Parisien Newspaper had a capital increase of about €18,000,000 which reflects our conviction that this daily newspaper has pride of place in the French media and so therefore should be able to go back on a path of growth and profitability. But the letter also asked about a second capital increase that supposedly occurred earlier this year, but this was not the case.
And the 4th and final question from this shareholder is about the facade of the Samaritan on Rue de Rivoli. The author of the question feels that this is probably on the vanguard of technology, but its aesthetics makes the world look even more banal and impersonal? The answer is we cannot expect to please everyone at the time when it was built. The Eiffel Tower was also came under sharp criticism. The facade of Samaritan Rui de Rivoli designed by the Samar Architects Firm, which got the Pritzker Achievement Award is original because of its curves and its transparency, but also reflects the original rhythm provided by the many windows as to the world becoming banal and uniform.
That criticism seems inappropriate. Those nostalgic of older days will see that the Renaissance of the Samaritan apart from its contemporary touch will also be the renewal of the splendid Art Nouveau and Artico buildings designed by Jourdan and Sauvage, but also this was the faithful rendition of the glass windows and mosaics that had suffered over the years. That's the last question. Thank you. And now we can move on to questions from the audience and members of the Executive Committee may now join us on stage.
Ladies and gentlemen, we'll be happy to take your questions now. If you do wish to put a question, please introduce yourselves first. Are there any questions at all? I see number 1 there. Good morning.
My name is Roger Tran. I'm a longstanding shareholder. I have three questions about LVMH. Recently, I believe you acquired Belmond and I would like to know how do you propose to reconcile this with Cheval Blanc? And what is your policy as regards people age 50 years or more and the younger generation living in the nine-three district of Paris?
And also, we found some counterfeit Louis Vuitton bags. What are you going to do about that? Well, Belmont and Cheval Blanc are 2 different brands, the different types of hotels. And we've just signed the final contract we've closed on Belmont. And so we'll see on a case by case basis how these buildings will be these hotels will be developed, but the two brands will remain separate.
What we try to do about this youth in the 9.3 is to, as it were, combined the expertise of our sort of more senior people helping this younger generation full of energy and sort of directing this energy towards positive things. And we're training them. We're trying to provide training to these people. Of course, we are also recruiting some of the fine minds, young graduates of the best schools around the world, But also for the craftsmanship, we try and recruit people who have the right kind of talent. Also, you have people who simply young people who do not quite know what to do with themselves, but we can help them do something useful, providing them with some training from people from our senior people who do have considerable experience and skills.
And we've started it out. You said over 50, you have even people in their 40s who are there coaching or training these unruly youth. And we find that more and more of these young kids are now being feel attracted to LVMH and we're trying to provide some kind of training. And the final training about counterfeit, unfortunately, this has been going on for years years. This is, as it were, the ransom of success.
Of course, you can see Cardafique, Dior or Louis Vuitton products, even some of our wines and spirits are you have CANDEFLITE bottles of that. And of course, we try and enforce this as stringently as we can in those countries where there is a sort of counterfeit industry. We were trying to address this as firmly as we can, but it's never easy because these people are very much these counterfeiters are very often funded by very dubious circles, some of them close to terrorist organizations and such like. So you've got to be very well, we have to make sure the people working there can do so safely. But of course, whenever we can, we engage lawsuits.
But this is a scourge for all French and indeed European brands whenever they're successful, whenever they're popular. This is bound to happen, but that means that governments must get involved and the fight against that is done slowly but surely. But here in France, we had the support of public authorities on the Mediterranean seaside a few years back. When you went to a beach on the south of France, you had these traveling salesmen carrying on their bags products with all sorts of items with French brands. And at the time, what happened was that these people were arrested.
They were remanded in custody for 24 hours and then they returned to the beach with the same counterfeit products for sale. Now we ask the authorities to do things differently instead of arresting that individual because usually these people were just were doing that for well, to eke out a living and they were often manipulated by some sort of a mafia type organization. So what we've decided to do instead was to seize the goods and destroy the goods. And now you may see, if you go to the South of France, you don't see these people going around with these counterfeit articles for sale. But if you cross the border to Italy, well, there you still have this problem because at this point, we were not able to convince the Italian government to follow suit.
So it's still an issue. Are there further questions? Hello. My name is Goff Dini, and I'm the Editor in Chief of Fashion Network and congratulations on what was a very impressive year in terms of revenue, but also in terms of creativity. But I do have a question about Rihanna.
You created a company here in Paris on Rue Jean Boujean. I believe that's the headquarters of your fashion group here and you invested €60,000,000 and you appointed a Chairman. Congratulations to Jean Baptiste Firman. Now when do you expect to see where do you stand in your talks with the singer? Will there be a fashion show?
That's question number 1. Question number 2 about Christian Dior. I believe that you have a new shop at 127 Avenue Des Champs Elysees. The work hasn't started yet, but is it because of the yellow vest, the gilet jaunes there that has sort of stopped the construction work at the Champs Elysees? We were also told that you might close down your flagship boutique at Avenue Montaigne or you could have a restaurant there instead?
Or maybe we can have answers. I don't know, Pierre Fabec could answer that. And then number 3, I believe you had a stake a media group Business of Fashion. Do we know just how much you have? What's your stake in that group?
And when you read Business of Fashion, whenever there's a paper on LVMH, it says that you have a written agreement to respect independence. Can we see the actual tax of that agreement because for purposes of transparency? And finally, 4th and final question, Various sources have been saying that, well, you considered doing something with your Pucci brand in Florence. So what's happening with that? So to start with Rihanna, the singer, I like the fact that you're interested in this singer.
She's I do think she is an extraordinary singer, but we like to have little surprises and we'll keep this under wraps for now. On the Christian Dior shop, can you say something about that? Regarding Christian Dior, well, that's an easy one. That is a temporary shop that will be used while work the renovation work goes on at Avenue Montaigne. So I hope that when that shop opens, it is a temporary shop.
I hope that by then, the gilets jaunes situation will be under control. Otherwise, indeed, we will probably wait a while before we open it. Business of Fashion, we've had this stake in that company, but it's a very small amount. And as to Pucci, I don't know where you got your sources, but it is not the case. This thing is not up for grabs.
It's not for sale. Other questions? Yes. Good morning. My name is Thierry Touche.
I'm an individual shareholder. Good morning, Mr. Arnaud. I would like to say congratulations for your generosity on Monday. That gift that grant €200,000,000 to renovate Notre Dame, which is a universal cathedral, was very moving to us all shareholders, but also to all the French.
Of course, there's been some sort of controversy around that, people challenging this gesture. I would like to say what you said to these people who are questioning your sincerity. Well, there is indeed you have seen this controversy, something about the tax savings under the Massena provisions. Part of the money is on the sponsorship provisions. Since there's no revenue from the association giving the money, the provision does not apply.
And regarding LVMH itself, we've been using the LVMH Foundation. Again, the Sponsorship Act, again, doesn't apply either. And it is we it is really quite unfortunate to see these responses from part of the public opinion. I mean, we can see the response here amongst shareholders who appreciate the gesture. We're trying to do something for the public good, and we've been doing this in this company all along.
But unfortunately, this is the sort of thing that crops up on TV shows where pettiness and jealousy are given pride of place over the general interest. If you're as LVMH shareholders are happy with this gift for the reconstruction of this unique cathedral, which is a symbol of France. Please go to the website and express your support or to us or your dismay because I must say, I can only be dismayed to see this sort of criticism for an action where in which in other countries would elicit congratulations instead.
Yes. Next question please. Yes. Good morning. I've got two questions about the dividend.
Do you plan a payment of the dividend in shares? 2nd point regarding the share price. Would you consider splitting the share? A word about the welcome at the combined meet shareholders meeting. It's a pity that we have to leave our bag or luggage where we've got personal belongings in that bag.
This distrust regarding possible incidents has its limitation. Thank you. Well, on the dividend, no, the share based dividend, that's not on the agenda. We've never done that. In order to maintain the capital shareholdership, We'd have to maintain the same number of shares.
So it would be a cash disbursement whereas we pay the dividend in cash. Splitting the share, that's not on the cards. The share price has risen considerably. Security measures, well the world is what it is and we must take those security measures and that rule. Brooks, no exception.
Next question please. Ladies and gentlemen, good morning. I'm a private shareholder, have been for a long time. Well done for your performance, for your constructive mindset, your ethical approach and the hard work of your employees. You made a comment.
Just be careful about Boeing when you travel. My question is how do you make do with the negative and possibly positive effects of climate change affecting your vineyards? And lastly, as a nod, since people are very attracted to the yellow jackets or vests, could you perhaps sell some in your stores? On the vineyards? Well, yes, on the vineyards, there are many effects that we track and monitor in all our activities.
For instance, in Argentina, we have vineyards near the Andes that we are currently planting higher or changing the grape varieties? Take kind of climate change in Champagne. Climate change was rather positive in terms of grade quality. So it varies considerably from place to place. We monitor things closely.
We're developing a new R and D center in Champagne to heighten our research efforts on this, but we track this closely with varying varieties impacts depending on the grape variety and the region of the world. Next question. Thank you. I'm a private shareholder. I wanted to speak earlier when the gentleman wanted to congratulate Mr.
Arnaud. I thought that given the small handful of billions that we'll be receiving that some of us may also wish to make a gift. And I was wondering whether the Louis Vuitton could not perhaps combine that is to receive our donations. And at some point joining Mr. Bernard Arnault, the shareholders have donated a certain number of 1,000,000
out of the
€3,000,000,000 in shareholder return. Well, I suggest you meet with Mr. Guillenie after this meeting to discuss with him what's possible. I mean we're open to all suggestions if to contribute over and above what we've done collectively with LVMH then we can of course assist you in with the practical aspects. One more question over there.
Yes. Good morning. I'm a Private Shareholder. First of all, my hearty congratulations for the 568 percent increase over 10 years and the consistently good results. 3, well it's not guaranteed that it's going to last forever says Mr.
Arnault. Absolutely. I had a question at this regard. Regarding the competition of Chinese brands, I read that there were Hong Kong groups, Choe Tai Fook, the Chinese Tiffany's or other groups, are they a threat for our brands? 2nd question regarding the anti corruption laws in China.
What is the impact on the accounts? It's not perceptible on the of it. Is it a real threat? 3rd question, Trump's threats on snapping taxes on certain products. Is that a risk for you?
And were it to materialize, would it have significant consequences on our earnings? And one last one, would you buy today the LVMH stock? I saw that you bought around the 350, 360,000,000 mark back in the December crisis. What's your position today? Thank you.
Well, competition, there's a lot of competition out there. For the time being, the most head on competition doesn't come from Chinese brands, but rather from French brands and European brands. So competition, Chinese brands possibly. I saw the other day the Chinese First Lady who was visiting Paris with her husband was very elegantly dressed by a Chinese designer. So I mean what counts is really the history of brands.
And when a customer today wishes to buy a branded product, he looks at the legacy, the history. We mentioned meaning earlier. What is the founding myth of the brand? I'm sure that some time will elapse before Chinese brands can rival a founding myth such as that of Louis Vuitton that dates back to the middle of 19th century. So I'm not really worried.
Anti corruption laws in China. Well that's rather good news because it improves behavior and allows us to work more openly. And as you've noted, it has no real impact on our products on the markets. Customs, customs duties, well, it'd be preferable to negotiate with the U. S.
Administration to try and find a way of avoiding those customs duties. It hasn't yet been decided. It's just a threat at this stage. And so we'll strive to negotiate. Share shares buying the share.
Well, I mean I buy I'm constantly buying shares. I have been for 30 years now, but mustn't necessarily do as I do because sometimes I buy and then the share price drops. But I'm not here not for eternity, but at least for the long term. It's of no consequence. Next question.
Hello. I'm a private shareholder. My question is more general. The commercial sales nature, you mentioned your performance excellence across the board and you even have products that are pre sold. So congratulations for that.
My question concerns your profit margins. You tell us that most of your performance is due to the quantity of products sold and the margin improvement. So my question is how do you improve them? Sit through reducing, cutting costs, increasing the sale price, better supply chain efficiency, but more generally or perhaps more confidentially, do you have a sale price policy? How do you set your sale prices since you told us that on Internet your products were sold more expensively than you sell them, but it's just a question.
It may be confidential.
Well, you partly answered the question yourself. It is a combination of factors that improve our profit margin. Sales price, of course, make a difference, but you may have seen in our statements that we have kept these pretty much under check. The Louis Vuitton, for instance, hasn't increased its prices over the past few years or hardly at all. Another profit margin factor is the volume effect.
When you have higher volumes, you absorb part of the overheads and so then you can generate more profits. This is well, it's usually the volume effect more than the price effect that improves the profit margin. I believe there's a question from Sal Souflu, somebody in the other auditorium. There's so many of you that we had to have an overflow. Is there a camera?
I am on screen, says this gentleman. My name is Claude Arroche, and I'm speaking to you from Sal Souflo, which is the sort of second class the room for 2nd class shareholders. I showed up at 9 a. M. And I signed off at 10 past 9 and I believed that my bracelet that was that I was presented with, which gave me access to the main room, looking at the, lost room with real people in front of me.
But unfortunately, alas, alas, alas, I was directed to an overflow room with 2 screens, but no soul, no human warmth. And discussing this with other shareholders, I found that we each had about a dozen shares. And so it seems that those who own more than share 10 shares have access to the main room and those with fewer than 10 shares are relegated to this overflow room. And I do deplore this form of discrimination. One example, one of the pure products of shareholder democracy, Air Liquide, has upwards of 4,800 shareholders at its AGMs and they wait for the main auditorium or the Palais des Congres before other shareholders had turned away to the overflow rooms.
But I'm sorry to this, but in terms of respect for all shareholders, you could do better and that would come that would be less expensive. Right. We'll take the last question in the main room now. It's already 12:15. So, of course, our congratulations for your fine work.
There was another shareholder who asked about the LVMH share to be split. I remember in the old days of the French franc, I believe the share was worth about CHF5,000 and I believe it was split 3 ways. And so I ended up with more shares. In any event, I believe that this went along with what you thought at the time was a great idea was to grant 1 free share if you bought 10 shares. I don't know if you could do something like this today.
Now another thing in I'm not quite sure what happened in Hong Kong. What was that? But I was under the impression that you had one of your retailers, one of your shops who had given up on you. What was that exactly? Regarding the splitting of shares, I mean, when the share price is €5,000 then we can consider that splitting the share.
The DFS concession, the duty free shop that we had in Hong Kong was running at a loss. And so we got rid of that. And now the profits are back. Now if you well, we'll move on to resolutions. All right.
We have a quorum, and so we can put the first resolution to the vote, and that is the approval of the accounts. Please vote
now.
Approve. The resolution is passed. Resolution number 2, approval of the consolidated financial statements. Please vote now. Approved.
Resolution number 3, dividends. Please vote now. Approved Resolution number 4, Belated Party Agreements. Please vote now. Approved number 5.
Ratification of the coopulation of Sophie Chastard. Oh, we need to show the video first, don't we? Okay, sorry. I have a degree in philosophy. I taught in high school and in universities.
I published a number of books. One book called AB Doesn't Make A Philosopher and that was my first opportunity to discuss the meaning of luxury and I've been advising company leaders on brands and what counts now is not so much a narrative on DNA or history, identity, but a vision of the world looking at all aspects of the human experience, not just in terms of consumption, consumer society, but also collective action, nature, relation to the environment. And that is something that the new brands, especially luxury brands, should consider. And now I have created my own company. When the Board of Directors of LVMH invited me on board, well, I didn't hesitate for a second because this company has tremendous energy, but also is very demanding.
It's never complacent. And LVMH will be even more interesting tomorrow than what it is today than it is today, sorry. What I would like to bring to this company is a new form of creativity. Philosophy is a very inventive subject, and this is what I like to do to create new concept, address new issues in a new way. And I will be providing my own take on new cultural developments, new ways of thinking and the way in which this affects behaviors, users, expectations, perceptions and a citizen's attitude because now this is part of the picture too.
The vote is well. All right. So please vote now. Approved and congratulations. And now we have renewal of my own term of office as Director.
Please vote now. I'm not allowed to vote. Well, thank you. You have to vote on the renewal of Sophie Chassard's term of office as director because she was first co opted as a director. But then the term her own term has to be renewed.
So you have to vote a second time. Approved and congratulations. Now we have resolution number 8, renewal of Clara Guemas, term of office as director. Congratulations. Now we have the renewal of Hubert Vadrin's term of office as director.
Congratulations.
And now let's show the presentation video for Mrs. Iris Knoblauch. I started my career as a lawyer in Munich, Germany, where I grew up, then at the New York bar with the New York Bar and the Bar of California. For 12 years, I've been working with Entertainment Time Warner, working for strategy for such brands as CNN and HBO. And then since 2,006, I've been CEO of Warner here in France.
It was my privilege to work with such giants as Clint Eastwood and flagship brands such as Harry Potter and Batman. And I was also behind the only French movies that got 5 Oscars at Hollywood. My mission is to support today's and tomorrow's talents behind every creation there are outstanding men and women and behind every business success there's a collective success. LVMH is one of the finest collection of brands in the world and there can be no success without strong brands. LVMH also epitomizes French Genius around the world, Excellency brought to its pinnacle, a company admired around the world.
So first of all, I'm very proud to join this major international group, which does reflect my own multicultural history. The world of entertainment and luxury have many things in common. The power of brands, the importance of talent and creativity, storytelling and the art of creating desire and dream. And that is what I would like to bring to this fine house. Congratulations.
Now we have a clip introducing Jan Artus Bertrand. Good morning. My name is Jan Arthus Bertrand. I'm a photographer and director. Since the age of 20, I've been fascinated by nature, biodiversity and the environment.
And now at age 70, I'm more and more concerned about the future when Bernard Arnault invited me to join the Board of LVMH knowing what my beliefs and convictions were. I believe that was a strong gesture on his part, his determination to and trust me with a mission that is in line with my capacities unlike something that you brew like an Herve Tea being brewed, I'm brewing inside the board as it were. This is a complicated world. We're all looking for meaning. We would like to go straight to the point.
And I believe that we will find that same quest for meaning amongst our customers, our employees, but also the shareholders. And I believe that this is the number one luxury group in the world and it has a significant responsibility. This is my message to you. Congratulations. Now we have the compensation package starting with my own.
Please note now. Approved. Approved. Then
Tony
Bononi. Approved. And then for a reason that escapes me, we have to approve the compensation policy for myself. That's the mysteries of the legal department. As first, lawyers need to find something to do.
All right, approved. And likewise for Tony Baloney. And maybe there's a third one down the line. Approved. Approved.
And an authorization to be granted to the Board of Directors to trade in the company's shares. Please vote now. Approved. Then authorization to the board to reduce the share capital. Now delegation of authority to increase the share capital through capitalization of profits, reserves or other items.
Approved. Now delegation of authority to the board to issue ordinary shares or securities. Please vote now. Approved. Delegation authority to issue ordinary shares.
Approved. And then delegation of authority to issue ordinary shares without preferential subscription rights?
Approved.
Approved. And then authorization to set the issue price of the shares and or securities and all securities in total issue amount not to exceed 10% of the share capital per year. The delegates approved
Approved.
Delegation of authority to issue shares and or securities giving access to other equity securities. Approved delegation of authority to issue up to a maximum of 10% of share capital ordinary shares or securities giving access to other securities. Please vote now. Approved authorized 26 to be granted to the Board of Directors to grant subscription options without preferential subscription rights. Please vote now.
Securities giving access to share capital reserve for members of the group's company's savings plans, what are known as the PEEs in French both now. Approved. And finally, determination of the overall limit for capital increases to be carried out immediately or over time pursuant to delegations of authority. Please vote now. Approved.
Thank you very much. Ladies and gentlemen, you are now invited to have refreshments right outside this room.