LVMH
Q3 2002 Sales 2002 Third Quarter Sales
In Euro million + 2% 8,661 8,850 2,976 3,032
Q3 2001 Q3 2002
2001 2002 9 months 2 LVMH Q3 2002: Sales highlights
• Good resilience of our major brands in challenging environment • Internal growth improves in Q3 due to: • New product launches • Successful store openings • Tourist travel slowly improving • Negative currency effect hedged at operating income level
3 LVMH Nine months 2002 Sales by region in Euros
In %
0% 17 17 France
+10% 17 18 Europe
+6% 27 28 US
+3% Japan 14 15 -9% 18 16 Asia 7 -9% 6 ROW 9 months 9 months 2001 2002
4 LVMH Nine months 2002 Sales Growth in Mainland US in $
9 months 2002 Champagne +21% Hennessy Cognac +5% Louis Vuitton +5% Perfumes & Cosmetics +6% TAG Heuer +8% Sephora (including .com) +32% Total + 18%
5 LVMH Nine months 2002 Sales Growth in Japan in Yen
9 months 2002 Champagne +11% Hennessy Cognac -13% Fashion & Leather +18% of which Louis Vuitton +12% Perfumes & Cosmetics +9% Watches & Jewelry +23% Total + 11%
6 Wines & Spirits - Q3 2002 Sales
In Euro million
+ 3% 1,409 1,458 554 542
784 827 Champagne 335 Champagne + 5% & Wines 329 & Wines
219 625 631 Cognac 213 Cognac + 1% & Spirits & Spirits
Q3 2001 Q3 2002 2001 2002 NB Pommery sales excluded since May 2002 9 months 7 Wines & Spirits - Q3 2002: Sales highlights
Champagne • Growth continues with YTD volumes up by 10% • Good performance in US, UK, and Japan • US depletions continue steady growth • Krug sales progress well
8 Wines & Spirits - Q3 2002: Sales highlights
Cognac • Growth continues with YTD volumes up 5%: sales impacted by negative currency effect • Strong performances in US & Asia • Continued rise in premium quality XO in Japan • Market share strengthened globally • Successful distribution realignment negotiated in US
9 Fashion & Leather - Q3 2002 Sales
In Euro million + 14% 3,028 1,003 2,647 903
Q3 2001 Q3 2002
2001 2002 9 months 10 Louis Vuitton in Q3
• Good performance in challenging environment
• Sales recovery since mid-August in tourist regions (eg Hawaï)
• Strong sales in September, especially in Japan • Successful launch of new products
• Tambour watch
• LV Cup line • Record sales for Omotesando store on the opening day • Events in Q4
• Opening of new major stores in November (Florence,Kobe)
• New advertising campaign
• New Bob Wilson line in stores at year-end
11 LVMH Fashion Group
• Most brands perform well due to local clientele • Particularly encouraging performances by Marc Jacobs, Berluti, Celine • Marc Jacobs remarkable success in the US • Berluti double digit growth in Japan and Europe • Success of Celine’ new Boogie bag • Fendi : new management structure in place • Successful roll-out of new store concept continues • Excellent reception of Spring/Summer collections • Dior/ Vuitton/ Fendi/ Pucci
12 Perfumes & Cosmetics - Q3 2002 Sales
In Euro million +4% 1,563 1,620 523 561
Q3 2001 Q3 2002
2001 2002 9 months
13 Perfumes & Cosmetics - Q3 2002: Sales highlights
• Sales in Q3 increased by a strong 12% at constant exchange rates • Increased market share for Parfums Christian Dior • Successful launch of new female fragrance Dior Addict • Roll out of Givenchy pour Homme and Eau Torride • Double-digit sales growth at BeneFit Cosmetics, Fresh
14 Watches & Jewelry - Q3 2002 Sales
In Euro million -1% 389 384 127 129 3rd parties
+ 2%
Q3 2001 Q3 2002
2001 2002 9 months
15 Watches & Jewelry Q3 2002: Sales highlights
• LVMH brands continue to grow • 9 months to September: + 2 % • Sales momentum improving at TAG Heuer • New watches in stores • Strong US sales • Endorsements from Tiger Woods and Sarah Fisher • Exceptional sales growth for Montres Christian Dior • Chaumet performs well in Japan,Korea and Europe
16 Selective distribution - Q3 2002 Sales
In Euro million
862 798 -8% 2,575 2,359
Q3 2001 Q3 2002
* 9 months 2001 incl. Sephora.com 2001 2002 9 months
17 Selective distribution - Q3 2002 Sales highlights DFS • Gradual recovery in sales trends:
• Q3 sales 15% below last year • Important currency impact in Q3 • Concession relief discussions continue with several airports • Maintain objective of breakeven for full year Sephora • US double-digit growth in US$ continues • Same-store sales >20 % for the first 9 months • Good performances in Spain and Portugal in Q3 • Total stores : 469 at Sep 30
18 Conclusion
• Group’s star brands are performing well • Strong local demand continues • Recovery in travel retail slow • Currency effects in sales hedged at operating level
Q4 geo-political certainties remain but.. • Further product launches
• New store openings scheduled • Continue to concentrate on main brands, focus on profitability and cash flow Confirm objective of significant rebound in 2002 Operating Income
19 LVMH
Q3 2002 Sales