LVMH’s full name is Louis Vuitton Moet Hennessy, which is the abbreviation of three old European luxury brands. LV is Louis Vuitton, M stands for Moet & Chandon, and H is the Hennessy. LVMH mainly manufactures and sells high-end luxury products. LVMH-Moet Hennessy headquarters in Paris. LVMH has 75 brands of the top-end luxury products; It is the only group that covered in all five major parts of the luxury markets. In LVHM, they have Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry, and Selective Retailing. There are more than 156000 employs in LVMH. LVHM cash flow: the cash flow of LVMH Moet Hennessy came from the daily business. They got profit from the day-to-day operating then invest in new business. The exposure of LVHM includes RTH-US, FTXD- US, PMR-US, IYC-US, XLY-US, LVMH-US. The primary exposure of LVHM is Euro-US, IYC-US, LVMH-US. Those three parts were mainly exposure. In 2013 the company had a significant issue, that is currency and foreign exchange losses, in the Q1 of 2014, the Euro was $103million in the negative foreign exchange. For the hedging, LVHM used 75% cover for the end yen about 120-129, LVMH used this way to help them get margin competitive presence space. The Euro 1.31 to USD, by using this way to help LVMH to leave room for the exchange rate adjustment. But we have to say in both ways they also can not make up for the loss of negative foreign exchange. So the foreign exchange is the essential thing that LVMH needs to fix up. The model of the LVMH is based on their vision, relies on the history of the brand as the foundation, at the same time inspiring creativity and striving for excellence. In 2016, LVMH got 5% growth in wines and spirits, 6% growth in the perfumes and cosmetics, and 3% growth in fashion and leather goods, 5% growth in watches and jewelry and 7% growth in select retailing, at last, the total revenues increased 5% to 37.6 billion Eurodollars, but one problem is that the Euro exchange rate goes down. With the Euro exchange rate goes up, US dollar go down. LVMH needs to remove FX losses, The Euro is the biggest problem, but I think ECB can figure out this problem, Euro exchange rate will goes down because of the different policies of the ECB and Fed. If the US dollar go down in the future, The LVMH can get more net profit.