INTRODUCTION CHANEL TODAY CHANEL is a French brand and an international business for luxury-goods consumers, organized as a global matrix structure on three activities, across three regions. The three activities are (i) FASHION, (ii) The operating profit amounts to $2,692 million FRAGRANCES & BEAUTY, and (iii) WATCHES with free cash flow of $1,628 million this year & FINE JEWELRY. They define our brand allowing the company to invest $1,457 million strategy, the products we develop, and the in brand support activities to deliver our creation communication tools around them. and innovation strategies, up 15 percent compared to 2016. CHANEL’s long-term We operate across multiple geographies in strategy is underpinned by a strong balance the Americas, Europe, and Asia, where local sheet, with net debt of only $18 million. markets are responsible for implementing the brand strategy, coordination, and product distribution. 110 As a part of modernizing and simplifying our organizations, we have established a Countries common holding company in London that will consolidate all CHANEL companies. The majority of our global corporate functions are based in London. CHANEL’s sales in 2017 20,197 continued to be strong and stand at $9.6 billion, up 11 percent compared to 2016 on a constant Employees currency basis, with growth in all regions.