Excellent Performance for LVMH in 2012 Business Wire PARIS -- January 31, 2013 LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, recorded revenue of €28.1 billion in 2012, an increase of 19% compared to 2011. This includes the integration of Bulgari as of June 30, 2011. Organic revenue growth was 9%. All business groups saw excellent momentum in Europe, Asia and the United States. Louis Vuitton, in particular, once again recorded double-digit revenue growth during the year. Revenue increased by 12% in the fourth quarter, compared to the same period in 2011, with organic revenue growth of 8%. The last quarter saw a modest increase in growth compared to the third quarter of 2012. Profit from recurring operations increased by 13% to €5 921 million, a performance which is even more remarkable when compared to the strong growth in 2011. Current operating margin was 21% in 2012. Group share of net profit was €3 424 million, an increase of 12% compared to 2011. Bernard Arnault, Chairman and CEO of LVMH, said: "2012 was another remarkable year for LVMH, especially in the context of the economic slowdown in Europe. All of our businesses demonstrated excellent momentum driven by innovation and the quality of their products, thereby strengthening their positions in traditional markets while continuing to develop in new ones. Looking beyond the appeal of our brands, it is the talent of our teams and their motivation that enables us to so effectively execute our strategy. In 2013, LVMH intends to further strengthen its global leadership position in high quality products by relying on its sound, long-term strategy." Highlights of 2012 include: *Profit from recurring operations close to 6 billion Euros *Further market share gains throughout the world *Strong momentum in the United States *Continued rapid growth in Asia *Strong progression in Wines & Spirits *Double-digit revenue growth and exceptional profitability at Louis Vuitton *Improved performance of other Fashion & Leather Goods brands *Remarkable year for Parfums Christian Dior which gained market share in a competitive environment *On-going strengthening of the market positions of DFS and Sephora due to their innovative products and services *Excellent results for TAG Heuer and the integration of the first full year of Bulgari *Free cash flow of €2.5 billion Euro millions 2011 2012 % Change Revenue 23 659 28 103 + 19 % Profit from recurring operations 5 263 5 921 + 13 % Group share of net profit 3 065 3 424 + 12 % Free cash flow* 2 177 2 474 + 14 % * Before available for sale financial assets and investments, transactions relating to equity and financing activities Revenue by business group: % change Euro millions 2012/2011 2011 2012 Reported Organic* Wines & Spirits 3 524 4 137 + 17 % + 11 % 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 % Other activities and (157) (288) - - eliminations Total LVMH 23 659 28 103 + 19 % + 9 % *With comparable structure and exchange rates Profit from recurring operations by business group: Euro millions 2011 2012 % change Wines & Spirits 1 101 1 260 + 14 % Fashion & Leather Goods 3 075 3 264 + 6 % Perfumes & Cosmetics 348 408 + 17 % Watches & Jewelry 265 334 + 26 % Selective Retailing 716 854 + 19 % Other activities and eliminations (242) (199) - Total LVMH 5 263 5 921 + 13 % Wines & Spirits: strong growth in vintages and prestige qualities The Wines & Spirits business group recorded organic revenue growth of 11%. Profit from recurring operations increased by 14%. Continuing the favorable trend for the wines and spirits market in 2011, demand remained strong in 2012. In addition to volume growth, improved product mix and a policy of adjusted price contributed to this excellent performance. Champagne recorded a strong performance in its rosé and prestige vintages. Sparkling and still wines from Estates & Wines experienced strong new growth. Hennessy cognac saw a very good year for all its qualities and in all regions. Belvedere vodka enjoyed good momentum outside the U.S. while the single malt whiskeys Glenmorangie and Ardbeg recorded rapid increases in their key markets. All maisons in this business group thus benefit fully from their value enhancing strategy, based on the image of their brands and the strength of their distribution network. Fashion & Leather Goods: excellent performance from Louis Vuitton and other brands The Fashion & Leather Goods business group recorded organic revenue growth of 7% in 2012. Profit from recurring operations increased by 6%. Louis Vuitton, which had another record year, increased its lead over other artisanal brands of leather goods. With double-digit revenue growth, Louis Vuitton maintained its historic strategy based on the extraordinary quality of its products and its excellent distribution. The Maison continues to record an exceptional level of profitability in a context of sustained investment dedicated to strengthening its savoir-faire. The opening of its first dedicated jewelry boutique complete with its first Haute Joaillerie workshop at Place Vendôme in Paris and the reopening of the Maison Louis Vuitton in Shanghai are among the highlights of the year. Fendi continued the qualitative expansion of its distribution network. Its iconic handbag Baguette experienced a record year on its 15^th anniversary. As the brand continues to strengthen its identity, Céline showed excellent performance in all its products and in all geographic areas. The performance of the other fashion brands continued to improve. Perfumes & Cosmetics: excellent momentum The Perfumes & Cosmetics business group recorded organic revenue growth of 8%. Profit from recurring operations increased by 17%. Parfums Christian Dior saw excellent performance driven by the strength of flagship lines, notably Miss Dior and J’adore. Dior Addict Lipstick confirmed its leadership position in its main markets and the skin care line Prestige continued its sustained growth. Guerlain continued to see strong growth momentum attributed notably to the performance of its new fragrance La Petite Robe Noire. Parfums Givenchy saw strong growth in its makeup line due to broader distribution and the success of its mascara Noir Couture. Benefit, Make Up For Ever and Fresh continued their strong growth. Watches & Jewelry: strong progress in iconic lines and development of industrial capacity The Watches & Jewelry business group recorded organic revenue growth of 6% in 2012. Profit from recurring operations rose 26% notably due the performance of Bulgari, consolidated as of 30 June 2011. LVMH watch brands experienced good momentum supported by many innovations and the excellent performance of their iconic models Carrera by TAG Heuer, King Power by Hublot and El Primero by Zenith. In Jewelry, Bulgari confirmed the success of its Serpenti and B.Zerol collections, enriched by new creations, and reinforced the quality of its distribution. Chaumet and Fred continue to develop their star collections. Selective Retailing: rapid growth thanks to its innovative product and service offering The Selective Retailing business group recorded organic revenue growth of 14% in 2012. Profit from recurring operations increased by 19%. Due to its strong commitment to the quality of its stores, DFS benefitted from momentum among Asian customers. Three major concessions were won in 2012 at Hong Kong Airport and the concession at Los Angeles Airport was renewed. The opening in Hong Kong of a third Galleria is also a key highlight of the year. Sephora continued to achieve an excellent level of performance and made market share gains across all its regions. Online revenue is growing strongly. In Europe, new stores opened for the first time in Denmark and Sweden. In the United States, the renovation of several flagship stores in New York strengthened the appeal of the brand. Sephora continued its expansion in China while accelerating the renovation of its existing network. Its first stores were opened in the high potential markets of Brazil and India. Favorable outlook for LVMH in 2013 Despite an uncertain economic environment in Europe, LVMH is well-equipped to continue its growth momentum across all business groups in 2013. The Group will maintain a strategy focused on developing its brands by continuing to build up its savoir-faire, as well as through strong innovation and expansion in fast growing markets. Driven by the agility of its organization, the balance of its different businesses and geographic diversity, LVMH enters 2013 with confidence and has, once again, set an objective of increasing its global leadership position in luxury goods. Dividend increase of 12% At the Annual Shareholders Meeting on April 18, 2013, LVMH will propose a dividend of €2.90 per share, an increase of 12%. An interim dividend of €1.10 per share was paid on December 4 of last year. The balance of €1.80 per share will be paid on April 25, 2013. The LVMH Board met on January 31 to approve the financial statements for 2012. Audit procedures have been carried out and the audit report is being issued. Regulated information related to this press release, the presentation of annual results and the report “Financial Documents” are available at www.lvmh.fr APPENDIX Revenue by business group and by quarter 2012 Other Activities Wines & Fashion Perfumes Watches Selective and & & & (Euro Spirits Leather Cosmetics Jewelry Retailing Eliminations Total millions) Goods First 926 2 374 899 630 1 823 (70) 6 582 quarter Second 833 2 282 828 713 1 767 (39) 6 384 quarter Third 1 006 2 523 898 690 1 862 (79) 6 900 quarter Fourth 1 372 2 747 988 803 2 427 (100) 8 237 quarter Total 4 137 9 926 3 613 2 836 7 879 (288) 28 revenue 103 2011 Other Activities Wines & Fashion Perfumes Watches Selective and & & & (Euro Spirits Leather Cosmetics Jewelry Retailing Eliminations Total millions) Goods First 762 2 029 803 261 1 421 (29) 5 247 quarter Second 673 1 942 715 315 1 410 (10) 5 045 quarter Third 871 2 218 793 636 1 547 (54) 6 011 quarter Fourth 1 218 2 523 884 737 2 058 (64) 7 356 quarter Total 3 524 8 712 3 195 1 949 6 436 (157) 23 revenue 659 About LVMH LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Hennessy, Glenmorangie, Ardbeg, Vodka Belvedere, 10 Cane, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Green Point, Cape Mentelle, Newton, Wen Jun. Its Fashion and Leather Goods division includes Louis Vuitton, the world's leading luxury brand, as well as Céline, Loewe, Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Donna Karan, Marc Jacobs and Berluti. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Perfumes Loewe as well as other promising cosmetic companies (BeneFit Cosmetics, Make Up For Ever, Acqua di Parma and Fresh). LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, Samaritaine and Royal Van Lent. LVMH's Watches and Jewelry division comprises Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, Hublot and De Beers Jewellery, a joint venture created with the world’s leading diamond group. "Certain information included in this release is forward looking and is subject to important risks and uncertainties and factors beyond our control or ability to predict, that could cause actual results to differ materially from those anticipated, projected or implied. It only reflects our views as of the date of this presentation. No undue reliance should therefore be based on any such information, it being also agreed that we undertake no commitment to amend or update it after the date hereof." Contact: Analysts and investors: LVMH Chris Hollis + 33 18.104.22.168.22 or Media: France: DGM Conseil Michel Calzaroni/Olivier Labesse/Sonia Fellmann/Hugues Schmitt + 33 22.214.171.124.89 or UK: M: Communications Hugh Morrison + 44.207.920.2334 + 44.773.965 5492 or Italy: Carlobruno&associati Michele Calcaterra/Mateo Steinbach +39 02.89.05.51.01 or US: Kekst & Company James Fingeroth/Molly Morse/Dawn Dover/Micheline Tang +1 212.521.4800
Excellent Performance for LVMH in 2012
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