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) FRAGRANCES & BEAUTY, and (iii) WATCHES & FINE JEWELRY. They define our brand strategy, the products we develop, and the communication tools around them. We operate across multiple geographies in the Americas, Europe, and Asia, where local markets are responsible for implementing the brand strategy, coordination, and product distribution. As a part of modernizing and simplifying our organizations, we have established a 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 continued to be strong and stand at $9.6 billion, up 11 percent compared to 2016 on a constant currency basis, with growth in all regions. The operating profit amounts to $2,692 million with free cash flow of $1,628 million this year allowing the company to invest $1,457 million in brand support activities to deliver our creation and innovation strategies, up 15 percent compared to 2016. CHANEL’s long-term strategy is underpinned by a strong balance sheet, with net debt of only $18 million. 110 Countries 20,197 Employees C HANEL TODAY INTRODUCTION