2012

Annual Results

January 31, 2013

Bernard Arnault
 Excellent performance in 2012

 Organic revenue growth of 9 %

ƒ High comparison basis
ƒ Strong momentum in the US and good growth in Europe
and Asia with contrasts between regions

 Profit from recurring operations up 13%

 Current operating margin of 21%

 Group share of net profit up 12%

 Strengthened financial position

ƒ Free cash flow up 14 %
ƒ Reduced net debt level

Wines & Spirits

Sustained demand and favorable product mix

2012 Highlights

 Volumes: champagne +2 % and Hennessy +6 %

 Product mix improvement and positive effect

from price increases

 Rapid progress in emerging countries,

particularly in Asia, and good resilience in Europe
and the US

 Strong innovation, reinforced marketing spend

and continued investment in production facilities

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 Fashion & Leather Goods
Excellent performance of Louis Vuitton
and other brands
2012 Highlights

 Louis Vuitton: double-digit revenue growth

ƒ Strong momentum in the US and good performances
in Europe and in emerging markets despite contrasting
conditions
ƒ Rapid progress in leather goods
ƒ Strengthened production capacities

 Fendi: qualitative expansion of its retail network

 Céline: all regions and product categories contributed

to strong growth

 Improved performance of other fashion brands

Perfumes & Cosmetics

Strong momentum and reinforced positioning

2012 Highlights

 Christian Dior: strong vitality of its iconic fragrances,

J’adore and Miss Dior, successful launch of make-up
innovations and sustained growth of high-end skincare,
Prestige

 Guerlain: excellent trend of the new fragrance

La Petite Robe Noire and of Orchidée Impériale

 Benefit, Make Up For Ever and Fresh: another year

of strong growth

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 Watches & Jewelry
Iconic lines reinforced and increased
production capacity
2012 Highlights

 First full year of Bvlgari’s integration

 Increased watch production capacity

for TAG Heuer, Bvlgari, Hublot and Zenith

 Strengthened iconic lines and continued innovation

momentum

 Targeted expansion of retail network

Selective Retailing
Rapid development thanks to innovative
product and service offerings
2012 Highlights

 DFS: in Hong Kong, started three new airport

concessions and opened a third Galleria

 Sephora: market share gains, strong momentum

in the US and rapid development of e-commerce

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 2013 Outlook for business groups

 Further strengthen Wines & Spirits position

in emerging markets

 Continue the development of Louis Vuitton

and accelerate profitable growth of other fashion
brands

 Build upon Christian Dior’s progress together with

Couture, and develop La Petite Robe Noire
at Guerlain

 Support Bvlgari’s development, continue industrial

integration and implement synergies within Watches
& Jewelry

 Strengthen DFS leadership in Asia and accelerate

Sephora’s international expansion

Favorable outlook for LVMH in 2013

 Confidence for 2013

despite uncertain European economy

 Develop and enhance our brands

ƒ Sustain innovation
ƒ Targeted expansion in promising markets
ƒ Continue to strengthen retail

 Pursue an ambitious human resources plan

ƒ Cultivate entrepreneurial spirit
ƒ Attract and develop best talent

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 Jean-Jacques Guiony

Quarterly evolution of 2012 revenue

6 582 M€ 6 384 M€ 12 966M€ 6 900 M€ 19 866 M€ 8 237 M€ 28 103 M€

+ 25% + 27% + 26% + 15% + 22% + 12% + 19%

The principles used to determine the net impact of exchange rate fluctuations on revenue of entities reporting in foreign
currencies (“currency impact”) and the net impact of changes in the scope of consolidation (“perimeter impact”) are
described on page 9 of the 2012 Financial Documents.

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 2012 revenue breakdown by region

In % of total revenue

United States (inc. Hawaii)

23%
Europe (excl. France)
20%

Japan
8%
France
11%

Asia (excl. Japan)

Other markets 28%
10%

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Revenue change by region

Organic growth
versus same period of 2011

LVMH Group 9 months 2012 Q4 2012 2012

United States* + 12% + 11% + 12%

Japan + 7% + 3% + 6%

Asia + 11% + 8% + 10%

Europe + 7% + 5% + 7%
* excl. Hawaii

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 Revenue by business group

Reported Organic
In millions of euros 2011 2012 growth growth
Wines & Spirits 3 524 4 137 + 17% + 11%
Champagne & Wines 1 782 1 980 + 11% + 7%
Cognac & Spirits 1 742 2 157 + 24% + 15%

Fashion & Leather Goods 8 712 9 926 + 14% + 7%

Perfumes & Cosmetics 3 195 3 613 + 13% + 8%

Watches & Jewelry 1 949 2 836 + 46% + 6%

Selective Retailing 6 436 7 879 + 22% + 14%

Others and eliminations -157 -288 - -

Total LVMH 23 659 28 103 + 19% + 9%

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Organic revenue growth

by business group

Organic growth versus same period of 2011

H1 2012 Q3 2012 Q4 2012 2012

Wines & Spirits + 15% + 6% + 9% + 11%

Fashion & Leather Goods + 10% + 5% + 5% + 7%

Perfumes & Cosmetics + 9% + 6% + 9% + 8%

Watches & Jewelry + 13% + 2% + 6% + 6%

Selective Retailing + 16% + 10% + 13% + 14%

Total LVMH + 12% + 6% + 8% + 9%

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 Summarized income statement

In millions of euros 2011 2012 % Change

Revenue 23 659 28 103 + 19%
Gross margin 15 567 18 186 + 17%
Marketing and selling expenses (8 360) (10 101) + 21%
General and administrative expenses (1 944) (2 164) + 11%
Profit from recurring operations 5 263 5 921 + 13%
Other operating income and expenses (109) (182)
Operating profit 5 154 5 739 + 11%
Net financial income (expense) (242) (14)
Income taxes (1 453) (1 820)
Income from investments in associates 6 4
Net profit before minority interests 3 465 3 909 + 13%
Minority interests (400) (485)
Group share of net profit 3 065 3 424 + 12%

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Profit from recurring operations

by business group

In millions of euros 2011 2012 % Change

Wines & Spirits 1 101 1 260 + 14%

Champagne & Wines 531 578 + 9%
Cognac & Spirits 570 682 + 20%

Fashion & Leather Goods 3 075 3 264 + 6%

Perfumes & Cosmetics 348 408 + 17%

Watches & Jewelry 265 334 + 26%

Selective Retailing 716 854 + 19%

Others and eliminations (242) (199) ns

Total LVMH 5 263 5 921 + 13%

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 Profit from recurring operations
on a same structure and currency
basis
In millions of euros
Organic Structure Currency
growth impact impact
+ 194 + 66 + 398 5 921

5 263

2011 2012
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Change in net financial income

(expense)

Change
In millions of euros 2011 2012 (M€)
Cost of net financial debt (151) (140) +11

Ineffective portion of foreign currency

(105) (49) +56
hedges
Net gain/(loss) relating to AFS* assets
and other financial instruments, dividends 43 205 +162
received

Other items - net (29) (30) -1

Net financial income (expense) (242) (14) +228

* AFS: Available for sale

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 Sound financial structure

In billions of euros

 Increased total equity

49.9 49.9
 Reduced net debt
Total equity
51%
 Risein non current assets mainly
Non current
assets 72% due to increased net investments
and value of purchase
commitments for minority interests
Non current
30% liabilities
Inventories  Increase of inventories attributable
16%
Current to growth in the Group’s businesses
Other current 19%
assets 12% liabilities

Assets Liabilities
31/12/2012

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Analysis of cash flow from operations

Change
In millions of euros 2011 2012 (M€)
Cash from operations before
6 137 7 113 + 976
changes in working capital
Net interest paid (152) (154) -2
Income taxes paid (1 544) (1 970) - 426
Net cash from operations before
4 441 4 989 + 548
changes in working capital
Working capital requirements (534) (813) - 279
Operating investments (1 730) (1 702) +28
Free cash flow* 2 177 2 474 + 297
* Before available for sale financial assets and investments, transactions relating to equity and financing activities

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 Net financial debt and
free cash flow
In millions of euros

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2012 dividend up 12 %

Gross dividend per share - In euros 2.90

Average annual growth rate over 5 years 2.60
+13 %

2.10

1.60 1.60 1.65

2007 2008 2009 2010 2011 2012

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