First half 2003 results

September 12, 2003

Bernard Arnault

2

Key figures

OrganicgrowthVariationH1 2003In millions of Euros H1 2002

Net sales 5 818 5 236 -10% +1%

Operating income 840 874 +4%Operating margin (%) 14% 17%

Net income -before goodwill amortization 350 408 +17%

Net income 214 265 +24%

Net cash from operations 548 749 +37%

Net debt 7 554 6 528 -14%

3

A unique performance in the luxury universe

In a difficult environment ...• Remarkable performance of our major brands

• Organic growth of Group sales in H1

• Gains in market share

• Strong improvement of operating margin

• Financial discipline

• Significant increase of net cash from operations

…the Group reinforces its positionsin the luxury market

4

Good outlook for 2003

• Continue the strong growth trend• New product launches• Strengthen communication• Controlled development of store network

• Improve Selective Retailing results• Sephora US profitable in 2003

• Maintain breakeven objective for DFS in 2003

• Priority given to operating cash flow• Targeted investments

• Rigorous cost management to continue

• Confirmation of sales recovery during the summer

Objective maintained of tangible increase of operating income

Objective maintained of tangible increase of operating income

5

LVMH: A unique model

• Unique portfolio of brands• Quality and innovation• Geographic balance of sales• Complementary businesses• Dynamic and talented teams

LVMH well positioned totake full advantage of

the economic recovery

Patrick Houël

7

Key figures

Net sales 5 818 5 236 -10%

Gross margin 3 738 3 507in % of sales 64% 67%

Marketing and selling expenses (2 220) (2 042) -8%General and Admin expenses (678) (591) -13%

Operating income 840 874 +4%

Net financial expenses (164) (93) -43%Other income & expenses (99) (77)Income taxes (199) (236)

Net income beforegoodwill armortization 350 408 +17%

Net income 214 265 +24%

H1 2002In millions of Euros H1 2003 % variation

8

Operating incomeby business group

% marginH1 2003

% marginH1 2002H1 2003In millions of Euros

Wines & Spirits 321 40% 30%

Fashion & Leather Goods 634 33% 32%

Perfumes & Cosmetics 39 4% 3%

Watches & Jewelry (38) - -

Selective retailing (15) -1% -3%

Others & eliminations (67) - -

LVMH 874 17% 14%

9

A healthy financial structureIn billions of Euros

30/06/0330/06/02

20.621.5

13.0

3.6

4.0

13.8

3.5

4.2

63%

16%

20%

64%

17%

20%

30/06/0330/06/02

21.5 20.6

8.742%

5.828%

6.130%

8.640%

6.530%

6.430%

Investments and other assets

Inventories

Other currentassets

Stockholder’s equity & minorities

Long termliabilities

Currentliabilities

ASSETS LIABILITIES

10

Strong reduction in financial expensesIn millions of Euros

164

93

H1 2002 H1 2003

- 43%

Net financial expenses

At June 2003, net debt declined by more than 1 billion Euros since June 2002

At June 2003, net debt declined by more than 1 billion Euros since June 2002

11

Growth in cash flow from operationsIn millions of Euros

432

548

749

H1 2001 H1 2002 H1 2003

+37%

12

Hedging cover

At August 31, 2003

EUR / USD 0.90 0.936 1.072

% cover 86% 82%

EUR / JPY 103 116.7 123.9

% cover 85% 65%

2002 2003 2004

Antonio Belloni

14

Wines & Spirits

15

Wines & SpiritsKey figures

In millions of Euros

418 354

498443

H1 2002 H1 2003

Sales

916

797

Operating income

172

105

182

139

H1 2002 H1 2003

277321

Champagne& Wines

Cognac& Spirits

16

Champagne & Wines H1 2003 - Key points

• Gains in market share

• Strong improvement in operating margin

• Good performance of major brands, in particularin the United Kingdom and Japan

• Increased strength of the US distribution network thanks to partnership with Diageo

17

Cognac & Spirits H1 2003 - Key points

• Hennessy volumes increase by 5%

• Good performance of the VS segment

• Sustained growth in the US

• Progression in Asian market (exc. Japan),despite the effect of SARS in May and June

• Launch of Fine de Cognac in the United Kingdom,after France and Germany in 2002

• Sale of Hine

18

Wines & Spirits 2003 Outlook

• Reinforce our leadership in high quality range

• Focus on key brands and key markets

• Maintain price discipline

• Focus on growth drivers• Japan for champagne

• China, Korea, Russia for cognac

• Continue distribution network reorganisationto improve efficiency

19

Fashion & Leather

20

Fashion & LeatherKey figures

634646

H1 2002 H1 2003

1 8962 023

H1 2002 H1 2003

Sales Operating income

In millions of Euros

21

Fashion & Leather H1 2003 - Key points

• Double-digit increase of Louis Vuitton sales at constant exchange rates

• Reinforced communication• Success of the products from the collaboration between Marc Jacobs and Murakami

• New stores in New Delhi, Barcelona, Hamburg, Saint-Barth ...• Strong demand from local customers

• Long term strategic development of Fendi• Refocusing on leather and fur products• Reorganisation of the supply chain

• Continued reorganisation of Donna Karan• Good growth of Celine, Marc Jacobs, Berluti, Pucci

22

Louis Vuitton

23

Louis Vuitton2003 Outlook

• New products• Development of the Suhali, Multico collections

• New Monogram products

• New épi soft leather and new colors

• Continued expansion of store network• New territories (India, Russia, …)

• New stores in Paris (Avenue Montaigne),Tokyo (Roppongi), Hong Kong (Pacific Place)...

• New advertising campaign with Jennifer Lopez

24

Louis Vuitton2003 Outlook

25

Louis Vuitton2003 Outlook

26

Fashion & Leather 2003 Outlook

• Fendi pursues its revitalization• Improve network productivity

• Investment in new advertising campaign

• Donna Karan returns to positive momentum• Reduction of loss-making parts of business

• Good reception to Autumn/Winter collections

• Continued development of accessories

• Targeted store openings• Céline, Loewe, Fendi, DK in Omotesando

• Pucci in London and new Kenzo flagship store at Pont-Neufin Paris

• Berluti in Moscow and Osaka, Givenchy in Tokyo

27

Perfumes & Cosmetics

28

Perfumes & CosmeticsKey figures

39

30

H1 2002 H1 2003

9741 059

H1 2002 H1 2003

Sales Operating income

In millions of Euros

29

Perfumes & CosmeticsH1 2003 - Key points

• Good performances in Japan and Korea compensating for decrease in travel retail

• Parfums Christian Dior• Considerable success of the Capture R60/80TM skincare line

• Good development of Dior Addict perfume and successof J’Adore

• Excellent performance of BeneFit Cosmetics

• Fresh continues its growth

30

Perfumes & Cosmetics2003 Outlook

31

Perfumes & Cosmetics2003 Outlook

• Continue to gain market share

• Improve operating margin • Numerous launches scheduled in H2

• New make-up and skin care products at Dior• Two new female perfumes, Very Irresistible from Givenchy

and L’Instant from Guerlain• Two new male fragrances KenzoAir from Parfums Kenzo

and Higher Energy from Dior

32

Watches & Jewelry

33

Watches & JewelryKey figures

In millions of Euros

210

255

H1 2002 H1 2003

Sales

255

210

-38

-7

Operating income

H1 2002 H1 2003

34

Watches & JewelryH1 2003 - Key points

• Difficult market notably in Europe, Asia (except Japan)and Travel Retail

• Good sell-out from TAG Heuer, but destocking phenomena

• Double-digit increase at Dior Watches, Chaumet

• Completed Zenith repositioning

• Increased operating losses• Decrease of gross margin due to strong Swiss Franc –

little hedging cover

• Prices maintained

• Continued marketing investments

• Excellent results of the Tiger Woods campaignfor TAG Heuer

35

Watches & JewelryH1 2003 - Key points

36

Watches & JewelryH1 2003 - Key points

• Difficult market notably in Europe, Asia (except Japan)and Travel Retail

• Good sell-out from TAG Heuer, but destocking phenomena

• Double-digit increase at Dior Watches, Chaumet

• Completed Zenith repositioning

• Increased operating losses• Decrease of gross margin due to strong Swiss Franc –

little hedging cover

• Prices maintained

• Continued marketing investments

• Excellent results of the Tiger Woods campaignfor TAG Heuer

34

37

Watches & Jewelry2003 Outlook

• Recovery of sales since June

• Delivery of numerous new models presented at Basel Watch Fair

• Reduction of costs other than communication

• Chaumet’s joint venture in Korea,and new Geneva store

• De Beers opens in three big Tokyo department stores

36

38

Selective Retailing

37

39

-15-39

1 353

1 560

H1 2002 H1 2003

Sales Operating income

Selective RetailingKey figures

In millions of Euros

H1 2002 H1 2003

38

40

Selective RetailingH1 2003 - Key points

Travel retail• DFS sales fall significantly due to fall of tourism

from March

• Reinforced cost control measuresand renegotiation of airport concessions

Selective retail• Strong improvement of Sephora results

• Selected store openings in Europe (Paris Rivoli, Monaco)and launching of a loyalty card in France

• Double-digit sales growth at Sephora US • sephora.com already profitable

39

41

Selective Retailing2003 Outlook

DFS : confirmation of breakeven objective

• Continued progressive increase in tourism

• Renegotiation of last airport concessions

• Achievement of internal cost reductions

Sephora: increase of operating margin

• Profitability for Sephora US

• Focus on innovation and marketing in Europe

40

First half 2003 results

September 12, 2003