PARTNERING FOR INNOVATION No business will find all its new ideas internally. It requires collaboration. We search for excellence and inspiration in product development and customer service outside of our business via the following methods: • Financing academic research partnerships: We work with leading academic institutions worldwide in the field of cosmetic formulas. • Encouraging suppliers to innovate: We work with our suppliers to produce new, more environmentally friendly creations at scale. • Partnerships with start-ups: We work with the pioneers of the future to ideate new, more energy-efficient processes. • Collaborating with others: We work with business-model disruptors to create long-term value. Some examples of our innovative partnerships are as follows: FINANCING RESEARCH: THE CD LAB FOR BIOTECHNOLOGY OF SKIN AGING Skin aging is one of the major topics our research team needs to focus on in order to create the most efficient and relevant skincare products. To do so, CHANEL set up a seven- year collaboration with experts in the field of aging and biological skin cell deterioration: Professor Dr. Johannes Grillari and his team from the Christian Doppler Laboratory (CDL) for Biotechnology of Skin Aging, in Austria. This partnership is co-funded (50–50) by CHANEL and the Austrian government (Federal Ministry for Digital and Economic Affairs). Through this partnership, CHANEL is committed to financing academic research to increase public knowledge on skin health and skin aging, and provide innovative and efficient skincare solutions for women. This work resulted in the following: • 42 scientific papers published in renowned international scientific journals. • One patent on Solidago Virgaurea extract as a new anti-aging active ingredient, which was launched in 2018 in the SUBLIMAGE L’Essence Strengthening formula. • 15 bachelor’s and master’s theses and two doctoral dissertations have been completed, and two doctoral dissertations are in progress. SUPPORTING SUPPLIER INNOVATION: THE GABRIELLE FRAGRANCE BOTTLE Launched in 2017, the GABRIELLE CHANEL FRAGRANCE was created with the eco-design of its packaging in mind. While the concept of luxury is often associated with the weight and thickness of the glass bottle, this rebellious fragrance required the opposite approach. Working with our long-standing glass manufacturer over the course of several years, we developed a thin-walled glass to produce an exceptional bottle. The lightness and beveled lines of the fine glass allow the intense light contained within this fragrance to radiate. The result is a bottle with a carbon footprint approximately 40 percent lower than a typical 50-milliliter perfume bottle made by the same glass producer. INNOVATION — CREATING VALUE FOR SOCIETY