In a rapidly changing world, CHANEL needs to constantly anticipate society’s expectations so we can develop new ideas that will help sustain our business over the long term. Experimentation and innovation have been driving forces throughout our history. We are able to reinvent ourselves continually to adapt to change in society. Innovation for CHANEL is about harnessing that dynamic legacy so we can protect our business from the challenges tomorrow presents. We do not innovate for the sake of it. Innovation needs to be at the service of creation, whether that’s in relation to improving cosmetic formulas, using new materials in our FASHION creations, working on more sustainable production processes, or creating our own watch mechanism. The aim is that our innovations bring real value to the consumer or society. More than other luxury brands, CHANEL plays with the tension between heritage and novelty, savoir faire and innovation. This perspective is inimitable, and the paradox is typical of our brand identity. INNOVATION — CREATING VALUE FOR SOCIETY A CREATION-DRIVEN BRAND