ABOUT THE ONLINE COMPENSATION REVIEW

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1 LVMH TALENTSHIP February SPECIAL EDITION LVMHtalent February Group 2017 HR Newsletter #13 17 Please feel free to cascade this HR Newsletter among your HR teams as you feel appropriate. EDITO Guillaume LE CORRE Since the Go-live in October, more than 900 HR employees have accessed LVMHtalent to manage the core HR information of 35,000 Employees worldwide. In most of the Maisons, Managers and Employees have also started to use the self-service to access and update their own CV and to perform their PCR online. The success of LVMHtalent depends on the quality of the data it contains and that s why we rely on you to encourage your employees to update their own data. I would like to take this opportunity to thank all the HR Business and Region Representatives from the Project team, who have actively contributed to select and design the tool since the end of The new LVMHtalent is a collective achievement of the HR community! ABOUT THE ONLINE COMPENSATION REVIEW WHY DO THE ICR ONLINE IN LVMHtalent? Rodolph JASKOWIAK At Moët Hennessy, the Individual Compensation Review (ICR) represents a 2-month annual process covering close to 2,500 employees in 44 countries. The ICR online in LVMHtalent drastically simplifies our process, allowing all decision makers to solely concentrate on qualitative decisions and removing a lot of the technical burden associated to sending files around the world. It helps creating ready-to-use indicators, instantly updated to the population you are looking after. This way, the 63 worldwide Human Resources employees and each of the 364 Business Managers involved in the campaign can smoothly understand the outcomes of their decisions while securing data protection. In three words, it is Fast, Secured and Digital! A NEW DIGITAL ERA! The ICR Online in LVMHtalent is a new digital era, definitely obvious in our fast-moving environment to support the annual salary review process for Executives & Managers. We have been proposed to participate to the pilot for Parfums Dior France: it involves 15 HR users, 80 managers who are using the ICR Online tool to review roughly 800 managers overall in France, to make their salary proposals online and to live monitor their budget increase. Feedback from users is very positive: "efficiency", "data security", "a unique digital place for all to work in". The ICR journey is live for France! Philippe ROMET 1 / 8

2 ABOUT THE LEARNING MANAGEMENT SYSTEM WHAT HAS BEEN DONE SO FAR: From September to October: Initial testing phase for the Learning Management System with the Regional Executive Development teams as well as for some Maison HR Training contacts. In October: The Regional Executive Development teams (France, Europe, Asia, Japan and USA) were trained on the new LMS. In December: The Learning Data (such as learning history, programmes, sessions...) was uploaded into the new LMS and it was opened to the Regional Executive Development Team. In the first quarter of 2017: The Regional Executive Development Team and Maison HR Training will use the new LMS in order to manage the Group Training and substitute the current Quarksup tool. It will be opened up to each individual Maison HR Training contact after they have followed the LMS training in the first quarter of End of March/April 2017: With the new LMS, Maisons will also be able to add their own catalogues/programmes, to enroll their employees on internal programmes and to have the learning history of their employees. The mini CV will then contain both Group and Maison completed training. The Maison Projects will start from end of March/April If you are interested in finding out more, please contact the Group HRIS Team. LVMHtalent, 4 MONTHS AFTER GO-LIVE October 20th 2016: launch of the new LVMHtalent for all HR members 42 COUNTRIES 900 HR USERS LVMHtalent Mobile App: ongoing roll-out to HR 11TIPS SENT OUT TO HR USERS Around 3,500 S received and processed by LVMHtalent support team 50% Data update and completion on positions and Employees, often due to data accuracy in the former version of LVMHtalent 30% user connections 20% functional reminders November: gradual non-hr Go-Lives and opening of PCR campaigns Also published: Average of 2,500 DAILY CONNECTIONS 2 new video tutorials 1 FAQ 1 local Admin List The Organization Creation Request procedure The 2016 Communications Collection Remember: Since January 2017, on the second Tuesday of each month, a new Tip will be published directly in the "How to" section. No s will be sent. This "How to" section is available to all "HR Explorers" Users. 2 / 8

3 OMR TRAINING HR members with the "HR OMR/PCR" role in LVMHtalent have been trained in September/October 2016 on the OMR module. As planned, we are organizing a refresh OMR training in February. SHARE, THINK, EVOLVE In 2017, we will continue to work on improving and extending the scope of LVMHtalent. This will be a collective work involving all the Maisons. The objective is to share key information, think about new features we would need and make LVMHtalent evolve. It will also be an opportunity to explain the possibilities of the SuccessFactors quarterly releases (new improvements provided by the editor). "Open Square" will gather HR Business Sector and Region Representatives in February, June, September and November, for a half a day session in Paris. The first workshop will take place on February 22 nd. LET S TAKE A LOOK AT SOME GREAT INITIATIVES In Champagne, we presented the project and the new platform during Executives meetings as of June 2016 and we played the videos. In September and October, we presented the deployment schedule to the 400 Executives in Champagne. We launched the PCR campaign on November 26 th and opened the platform via an internal MHCS AND VCP/KRUG We organized 25 training sessions between November 28 th and December 2 nd to train our 400 Executives in Paris, Reims and Epernay. Our trainers Sophie Ackermann, Marie Symphal, Cathie Pezard and Valérie Hoche Guingamp guided the trainees during their first steps with the new LVMHtalent. Cyrille COURTIER Cyrille BOUTIN The HR team designed for the occasion a special LVMHtalent cup We had extremely positive feedback, about the user-friendliness, the easy access to the information and the navigation. Our Executives are thrilled about the simplified PCR form versus the old one and they loved the LVMHtalent goody we developed with the project team! Our objective? 100% of profiles completion and all PCR forms signed for March 15 th 2017! 3 / 8

4 Enrico FENDI Damien ROY Gianfranco FIORETTI LVMHtalent is an intuitive solution for all of us, and to support better our HR Explorers and help them in their daily duties, we decided to create some "home-made" tutorials, explaining them, step-by-step how to perform each action in the system. This way, in case of doubt, in addition to the official user manuals & booklets, they can have our support 24/7. We've received very positive feedback from them and we know they've already used the tutorials to train other new joiners in the HR Community. Given the success of this initiative, we've shared our tutos also outside Fendi, within the LVMH Italy HR network. Furthermore - after the Go-Live date, we've planned some live training sessions for all the non-hr users here in Palazzo Fendi, with tutorials, live guided navigation and presentation and granted everybody an additional support with a joint effort with our IT Help Desk at a worldwide level in case employees need first assistance on navigation & access to the tool. The new LVMHtalent went live for all our 110 HR users on October 20 th 2016 after several months of preparation and hard work of the project team at Headquarters as well as a huge contribution from regional champions, local relays and all HR PCD teams worldwide. In collaboration with our counterparts in other P&C Maisons, we developed 2 main communications initiatives to address all P&C HR users: an online teamsite to centralize useful documents, and a monthly newsletter. To help HR users adopt the tool and to encourage best practices, we provided them specific material: a video teaser to announce the GO LIVE, ing, HR specific booklets, a dedicated hotline, a powerpoint template, a promotional video in which I personally present the solution, its functionalities and PARFUMS CHRISTIAN DIOR Valérie LACHAUX Our next step will be the opening of the solution to our employees to extend this new HR MOËT HENNESSY ASIA PACIFIC The HR TEAM Moët Hennessy Asia Pacific employees welcomed the new LVMHtalent system which is easy to navigate and lets everyone be in charge of their own personal data, mobility opportunities and PCR. MHAP HR team started the Train-the-Trainer with the Country HR Managers to ensure they are equipped with the know-how of the new system so as to train their employees in the respective markets. We have over 1,200 employees, including both Executives and Non-Executives, in 14 countries, using the new system for PCR. MH is also the Champion for piloting the new ICR Module. We have received many positive feedback from our users and we thank the LVMHtalent team for moving HR practices forward! 4 / 8

5 We are thrilled to have a new LVMHtalent tool that allows us to better manage employee information and career planning. To ensure our employee population understands how to use the new tool, Moët Hennessy USA has created a one-hour training session that all employees are required to attend in-person or via Skype. We have also posted the training presentation to our intranet so employees may refer back to the program as they navigate through LVMHtalent. We know our population well, so we have done our best to anticipate their needs and ease them into the new tool, which has been well-received! We re excited to have everyone onboard MOËT HENNESSY NORTH AMERICA Jessica FASHION GROUP At Loewe, the new LVMHtalent launch has been very intensive in November, starting with broad communications about the new talent platform and the Performance and Career Review (already launched online in 2015) along with training sessions for all Managers and Executives: 10 sessions in the HQ and Regions with a specific one full day training for new managers and the use of Webex to reach the Retail population. The objective: engage, motivate and train all Managers and Executives worldwide until the end of 2016! Nathalie CHEVEAU Qin SHENG At Fashion Group Asia Pacific level, the idea was to motivate people to go to the new platform, complete their profile and add a picture by offering them the service of a professional photographer. The action is named Enhance your professional Image! In September and October, following the central sessions Train the Trainer, we locally organized trainings in Italy, South Korea, China, Japan, South Asia and United States showing the system to the HR colleagues in order to be ready for the Go-Live of the HR Community of Mid October: the feedback was immediately very positive, the system appears user friendly and more intuitive, an integrated and harmonized solution. An HR transformation journey in terms of modernization, simplification, process efficiency and employee engagement! The launch of the next PCR campaign is the opportunity to show them the new system in a process in which they were already involved (and - with the purpose of supporting them - we re sharing user guides and locally organizing short training sessions in addition to the tutorials and videos of the system). Meanwhile we re also working with the LVMH IT Team for the development of an interface between LVMHtalent and our HR Master Data in order to simplify and align information between systems without double uploading. We re sure that this new tool will strongly support all of us and our LORO PIANA Alberto SILVI Mattia DEMORI 5 / 8

6 @ BULGARI The new LVMHtalent for Bulgari employees went live on November 28th 2016, on the same date the annual PCR process was officially launched at Corporate level. Target population includes all Executives and Managers, Service/Project Managers as well as Head Of and Deputy Store Managers: about 25% of worldwide population/around 1,100 people worldwide out of 4,200. Giulia RICCIUTI Marina TREZZA Serena PIERATTINI The Go-Live has been communicated worldwide through a dedicated News in the corporate portal. Each Local HR has organized dedicated training sessions plus some one-to-one meetings on the LVMHtalent system and PCR module. For the deployment of the new LVMHtalent, we first sent a global communication to all Chaumet employees (passed on by local HRs in the regions) to explain the objectives of this new application and how to connect. We decided to open the new LVMHtalent to all Employees, whether Executives and Managers or not. Then we gave our Employees a few weeks to discover the tool and offered employees in the Headquarters to sign up to one of the 4 workshops we planned. These workshops were led by HR members and the aim was to talk about the 2016 PCR process with a focus on the online PCR form. We presented the various functionalities of LVMHtalent and showed Chaumet employees that the solution is an incredible tool for networking within the Group and a real opportunity for their professional development. Employees now appear very enthusiastic and willing to move towards even more transparency and access to CHAUMET Aurélie TAG HEUER In Switzerland we organized 4 training sessions in November 2016 with the objective to train our Managers to the new PCR. It was the opportunity to introduce the LVMHtalent PCR online module and the self-service. We trained Tag Heuer Executives as well as other Managers from various Maisons in Switzerland. Colette VULLIERAT CHRIGUI 6 / 8

7 At Fred, we organized 5 training sessions for Managers and 2 sessions for non-managers in December, including 4 lunch training. It was the opportunity to do a reminder on the key points of the PCR process and of course to show how it translates in the new LVMHtalent. It is all very new for us since we were using the PCR paper form until now. Now all of our Employees - except Sales Assistants - have made the switch to the online version and we had very positive feedback after the presentation. They feel the tool is efficient, playful and user-friendly. To be FRED Blandine GUERLAIN At Guerlain, more than 400 Executives & Managers in France are performing their PCR online this year. They all have attended in December very sharp and interactive workshops with a large part of Q&As. The whole HR team has been involved in the roll-out of this training. We have focused our messages on 3 key points: Emmanuelle GRETH Barbara BIET 1- How to develop your network within the Group 2- Clarifying the mobility guidelines 3- Sharing PCR best practices The Guerlain team is now ready for the LVMHtalent experience! Take the e-ownership of your career and connect with the LVMH tribe! This is how we launched our first communication teasing to the MAKE UP FOR EVER s teams. We wanted to make our Managers and Executives engaged and accountable for this launch. The launch was also concurrent with the PCR timeline and consequently we created a kind of excitement (and relief!) to perform the PCR online for the first time! To prevent any malfunction, the HR Business Partners team from the Headquarter organized 30 minutes lunch workshops to explain the new LVMHtalent, exchange and practice alongside with our employees. Within one week, 100% of our people were informed and trained. To spread the voice, workshops were also implemented in our markets to raise PCR online awareness among our local MAKE UP FOR EVER Damien TUZET 7 / 8

8 @ LE BON MARCHÉ At Le Bon Marché and La Grande Epicerie de Paris, we deployed LVMHtalent at the end of 2016 for all our Executives & Managers population. This tool marks a real evolution for both the HR community (simplicity, modernity, transparency) and the employees (openness, transversality, career empowerment). More than a tool, it s a new experience! Gaëlle MARCANTEI Charlotte ARNOUX We supported our users in their discovery through dedicated communications and training material. And for this "first online PCR, we organized PCR coffees workshops. Nothing too formal, and some prerequisites: to have logged in at least once to Talent and to have looked at the available material. Our idea was to propose an interactive and friendly approach. IT TOPICS INTERFACES: Following unitary tests, the Interface component applications (Maisons HRIS, TIM, SuccessFactors, secure folders ) are ready for Business Acceptance Testing, which is due to start in January Interface Phase 1 Go-Live is planned for February In the meantime, preparatory work is ongoing with our Maisons interested in being part of the Interface Phase 2 ( st semester). NETWORK PERFORMANCE: The Group-implemented workaround has proven effective, and enabled us to meet the operating requirements for LVMHtalent users in China. However, we keep a close eye on the network performance and work closely with SAP and our teams in China to ensure good performances. CSO AUTHENTICATION: For all our users with a business , CSO authentication is the way to connect. However, to ensure its functioning, it is necessary that Group guidelines for HR and IT teams are followed (OneDir synchronization and Data quality). Should you have any IT questions, please contact us at it.lvmhtalent@lvmh.fr If you wish to write us or share with us information, please contact us at : talent-management@lvmh.fr LVMH 8 / 8