the bvlgari group fiscal year 2003 rome, 29 march 2004 when printing the presentation please choose...
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THE BVLGARI GROUP THE BVLGARI GROUP
Fiscal Year 2003Fiscal Year 2003
Rome, 29 March 2004
When printing the presentation please choose the “Pure B/W” option
FINANCIAL RESULTS FINANCIAL RESULTS FY 2003 AND Q4 2003 FY 2003 AND Q4 2003
Eur mios. FY2003
FY 2002
DELTAFY 03/02
Q42003
Q4 2002
DELTAQ4 03/02
REVENUES rep.REVENUESconst.currency
759 774 -2%
+5%
247 255 -3%
+3%
GROSS PR.
Gross mg
474
62.5%
469*
60.6%
+1% 158
64.1%
155*
60.7%
+2%
EBIT
Ebit mg
117
15.4%
108
13.9%
+9% 55
22.1%
51
20.0%
+7%
NET PROFIT
Net P.mg
92
12.1%
76
9.8%
+21% 48
19.5%
39
15.5%
+22%
*restated due to inclusion of manufacturing costs in COGS during 2003
PRODUCTCATEGORY
FY 2003 Q4 2003 VARIATION % 2003/2002 FULL YEAR
VARIATION % 2003/2002
FOURTH QUARTER
REPORTED AT COMP.FX REPORTED AT COMP.FX
MEUR % ON TOTALSALES
MEUR % ON TOTALSALES
% GROWTH % GROWTH
JEWELRY 307.6 41% 99.1 40% +4.7 +12.9 +0.4 +7.6
WATCHES 244.2 32% 83.3 34% -16.6 -10.6 -15.5 -9.5
PERFUMES 136.7 18% 44.9 18% +3.1 +8.5 +12.2 +19.3
ACCESSORIES
55.7 7% 15.9 6% +39.5 +48.9 +15.5 +22.3
ROYALTIESAND OTHER
15.1 2% 4.1 2% +4.8 N/A +4.4 N/A
TOTAL 759.3 100% 247.3 100% -1.9 +4.9 -3.1 +3.5
REVENUES – 2003 AND Q4 REVENUES – 2003 AND Q4 20032003
DETAIL BY PRODUCT LINEDETAIL BY PRODUCT LINE
GEOGRAPHICALAREA
FY 2003 Q4 2003 VARIATION % 2003/2002 FULL YEAR
VARIATION % 2003/2002
FOURTH QUARTER
REPORTED AT COMP.FX REPORTED AT COMP.FX
MEUR % ON TOTALSALES
MEUR % ON TOTALSALES
% GROWTH % GROWTH
ITALY 105.5 14% 34.7 14% -1.6 N/A -3.4 N/A
EUROPEW/OUT ITALY
189.7 25% 55.5 22% -0.9 N/A -2.4 N/A
AMERICAS 108.7 14% 39.7 16% -6.2 +9.2 +4.6 +21.4
JAPAN 166.4 22% 56.8 23% +0.9 +10.7 -6.6 +0.2
FAR EAST 142.6 19% 46.6 19% +7.5 +20.2 +7.0 +18.7
MIDDLE EASTAND OTHER
46.4 6% 14.0 6% -24.6 N/A -29.9 N/A
TOTAL 759.3 100% 247.3 100% -1.9 +4.9 -3.1 +3.5
REVENUES – 2003 AND Q4 REVENUES – 2003 AND Q4 20032003
DETAIL BY GEOGRAPHICAL AREADETAIL BY GEOGRAPHICAL AREA
GROUPP/L
FY 2003MEUR
FY 2002MEUR
% GROWTH2003/2002
% ON REVENUES
2003
REVENUES 759.3 773.6 -1.9% 100%
GROSS MARGIN
474.4 468.8 +1.2% 62.5%
PERSONNELCOSTS
117.8 117.2 +0.5% 15.5%
ADV. AND PROMOTION
80.7 76.2 +5.9% 10.6%
AMOR.&DEPR 39.1 40.7 -3.9% 5.2%
OTHER GENEXPENSES
119.9 127.1 -5.6% 15.8%
TOT GENERAL EXP
357.5 361.2 -1.0% 47.1%
EBIT 116.9 107.6 +8.6% 15.4%
NON OPER.EXP. INC.MIN.
7.9 17.4 -54.4% 1.0%
PROFITBEFORE TAX
109.0 90.2 +20.8% 14.4%
TAXES 16.9 14.1 +20.5% 2.3%
NET PROFITAFTER TAXES
92.1 76.1 +21.0% 12.1%
BVLGARI PROFIT AND LOSS OVERVIEWBVLGARI PROFIT AND LOSS OVERVIEW
GROSS MARGINGROSS MARGIN
63.8% 62.5%
60.6%
2001 2002 2003
% WEIGH FY 2001
JEWELS 37.6
WATCHES 38.6
PERFUMES 16.5
ACCESSOR.
5.0
ROYA/OTH 2.3
TOTAL 100
% WEIGH FY 2002
JEWELS 38.0
WATCHES 37.9
PERFUMES 17.1
ACCESSOR.
5.2
ROYA/OTH 1.8
TOTAL 100
% WEIGH FY 2003
JEWELS 40.5
WATCHES 32.2
PERFUMES 18.0
ACCESSOR.
7.3
ROYA/OTH 2.0
TOTAL 100
FX RATESMarketevolution
2003AVERAGEFX RATE
2003vs2002
AVERAGEEUR
APPREC.
EUR/USD 1.13 +20%
EUR/JPY 130.95 +11%
ADVERTISING AND ADVERTISING AND PROMOTIONPROMOTION
INVESTEMENTS IN M.EURO AND AS A % ON REVENUESINVESTEMENTS IN M.EURO AND AS A % ON REVENUESas well as INDICATIONas well as INDICATION OF REVENUE GROWTH ON THE OF REVENUE GROWTH ON THE
YEARYEAR
1924
3350
61
82.3
102.376.2
80.7
1995 1996 1997 1998 1999 2000 2001 2002 2003
9.9%9.6% 10.2% 11.1% 13.6% 12.6%% on REV 12.2% 13.4%
+1%+32% +17% +28% +23% +33%REVENUEGROWTH
+39% +13%
10.6%
- 2% REPORTED,
+5% AT CONST.CURRENCY
CONSOLIDATED AVERAGE TAX RATECONSOLIDATED AVERAGE TAX RATE
19.6%
15.4%
15.6%
2001 2002 2003
NET WORKING CAPITALNET WORKING CAPITAL
INVENTORY ROTATION DAYS
222257
204
100
150
200
250
2001 2002 2003
Me euro 2001 2002 2003
RECEIV. 124 143 132
INVENTORY
547 477 430
PAYABL. -119 -118 -109
TOT NWC 552 502 453
CAPITAL EXPENDITURECAPITAL EXPENDITURE
M.EURO 2001 2002 2003
TANGIBLE 36 24 23
INTANGIBLE 12 9 15
TOTAL 48 33 38
CASH FLOW GENERATIONCASH FLOW GENERATIONM.EUROM.EURO
48
107
33
117
38
131
0
20
40
60
80
100
120
140
2001 2002 2003
INVESTMENTS CASH FLOW
BALANCE SHEET HIGHLIGHTSBALANCE SHEET HIGHLIGHTSM.EUROM.EURO
475
-284
548
-136
587
-45
-300
-200
-100
0
100
200300
400
500
600
2001 2002 2003
Net Equity Net Cash
GEARING60% 25% 8%
BVLGARI 2003 – ACTIVITIESBVLGARI 2003 – ACTIVITIESBUSINESS MODEL AXES NEW - 2003 PLUS - 2003
PRODUCT LAUNCHES ANDINNOVATION
LAUNCH OF A NEW JEWELRY COLLECTION
LAUNCH OF A NEW JEWELRY WATCH
LAUNCH OF A NEW MAJOR FEMININE FRAGR.
LAUNCH OF A NEW HANDBAG COLL.
LINE EXTENSIONS IN JEWELRY
LINE EXTENSIONS IN WATCHES
LINE EXT. IN FRAGRANCES, KITS
NEW S/S AND F/W COLLECTIONS IN ACCESSORIES AND EYEWEAR
NETWORK 13 NEW OPENINGSOF WHICH 4 STANDARD SIZE, 9 SMALL
2 IMPORTANT RELOCATIONSAND REFURBISHMENTS
BRAND AWARENESS MIRROR, OMNIA AND Bzero1 CAMPAIGN
VERY COST EFFECTIVE USE OF A&P TOOLS
ONGOING GROWTH OF EDITORIALSAND PRODUCT PLACEMENTS IN MOVIES
COST CONTROLEFFICIENCY FOCUS
HIGHER DEGREE OF VERTICAL INTEGRATION
ONGOING COST-CONTROL DISCIPLINE
BVLGARI 2003 – PRODUCTIONBVLGARI 2003 – PRODUCTION
ACTIVITIES VERTICAL INTEGRATION
RE-ENGINEERING BOTH ON PRODUCTS AND PROCESSES
ACQUISITION CROVA 50%
INTERNAL ATELIER CAPACITY IMPROVEMENT
WATCHMAKING FIRST INTERNALLY PRODUCED MOVEMENTS FOR BVLGARI GROUPGRANDE COMPLICATION WATCHES
BVLGARI 2003 – PRODUCT LAUNCHESBVLGARI 2003 – PRODUCT LAUNCHES
JEWELRY WATCHES PERFUMES ACCESSORIES
NEW PRODUCT LAUNCHES
ALLEGRA(Coriandoli, Caramelle,
Sassi, Metropolis, Tondo Shake, Optical and Theme
lines)
HIGH JEWELRYMagnificient Jewels
LUCEA WATCH OMNIA ASCOT HANDBAG COLL.
LINE EXTENSIONS
Bzero1Cufflinks-Gifts
LUCEARings, pendants, earrings
EAU PARFUMEE’ AU THE BLANC
NEW VERSIONS
RETTANGOLO BCIBVLGARI-BVLGARI DIAGONO PROF
DIAGONO RETTANGOLO QUADRATO ALUMINIUM
Bzero1
NEW KITS(S.VALENTINE, SPRING,
CHRISTMAS ETC)
New S/S and F/W Colours for
Bzero1, Décolleté,Geometrica handbags
New silk items and eyewear collections
ADVERTISINGCAMPAIGNS
THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND
“MIRROR”Bzero1
“MIRROR”Bzero1
OMNIA Bzero1eyewear
2003 – NETWORK EVOLUTION2003 – NETWORK EVOLUTION2003 2002 NEW
DOS BOUTIQUES 92 83 +9Of which
1 standard size/8 small
FRANCHISEES 35 33 +2Of which
1 standard size/1 small
TOTAL STORES 127 116 +11Of which
2 standard size/9 small
TRAVEL RETAILAND WHOLESALE STORES (POINTS OF SALE)
55 53 +2Both standard size
TOTAL STORES+P.O.S.
182 169 +13Of which
4 standard size/9 small
2003 2002 NEW
THIRD PARTYRETAILERS
>770 >770 unchanged
PERFUME DOORS >15,000 14,400 About 600
2003 – STORE REFURBISHMENTS and 2003 – STORE REFURBISHMENTS and NEW OPENINGSNEW OPENINGS
NEW DIRECTLYOPERATEDSTORES(DOS)
SapporoCapri
Nagoya MitsukoshiYokohama Sogo
Fiumicino/3Deagu Lotte
Valencia El Corte InglèsBeijing
Shanghai
Q1 2003 – shop in shop*Q2 2003 – free standing Q2 2003 – shop in shopQ2 2003 – shop in shopQ3 2003 – shop in airportQ3 2003 – shop in shopQ4 2003 – shop in shopQ4 2003 – shop in shopQ4 2003 – shop in shop
HIGH-END TRAVEL DESTINATIONHIGH-END TRAVEL DESTINATIONENHANCE LOCAL MARKET PRESENCEENHANCE LOCAL MARKET PRESENCESELECTED TRAVEL HUBENHANCE LOCAL MARKET PRESENCEENHANCE LOCAL MARKET PRESENCEEMERGING MARKETEMERGING MARKET
EXISTING DOSRE-LOCATIONS
Los Angeles
Madrid
Q1 2003 – free standing+flagship
Q4 2003 – free standing
FLAGSHIP + BRAND AWARENESS +ENHANCE LOCAL MARKET PRESENCEENHANCE LOCAL MARKET PRESENCE
NEW FRANCHISEES
Sao PauloManila Greenbelt
Q4 2003 – free standing*Q4 2003 – free standing
EMERGING MARKETEMERGING MARKET
NEW TRAVEL RETAIL WHOLESALE STORES
Munich Singapore 2
Q2 2003 – shop in airport*Q4 2003 – shop in airport*
SELECTED TRAVEL HUBSELECTED TRAVEL HUB
*standard size new stores, the remaining are smaller
BVLGARI 2003 – PR AND PROMOTIONBVLGARI 2003 – PR AND PROMOTIONTYPOLOGY EVENTS DETAILSCORPORATE PR ACTIVITIES
GRAND OPENINGS
EXHIBITION
LOS ANGELES RODEO DRIVE MADRIDBEIJING AND SHANGHAISAO PAOLOBVLGARI, 100 YEARS OF DESIGN
EDITORIALSAWARDS
N° OF EDITORIALSOMNIA
EAU PARF.THE BL.
About 24.000 NOMINEE TO THE ACCADEMIA DEL PROFUMO AWARDNOMINEE TO THE ACCADEMIA DEL PROFUMO AWARD
MOVIES/TVPRODUCT PLACEMENTS
MOVIES
ORIGINAL SERIES
INTOLERABLE CRUELTYTHE ITALIAN JOBWHAT A GIRL WANTSCONFIDENCEHOW TO LOSE A GUYMY HOUSE IN UMBRIASERVING SARAAND NOW LADIES AND GENTLEMENSEX AND THE CITY
VIPENDORSEMENTS&AWARDS 2003 RED CARPET
OSCARS/ACADEMYCANNES
VENEZIAGOLDEN GLOBEGODDESS EXH.-METAMERICAN CINEM.
ADRIEN BRODY, BONO, HILLARY SWANK, CLAIRE FORLANI…NICOLE KIDMAN, NADIA AUERMANN, ANDIE McDOWELL, NOEMIE LENOIR, KARINE SILLA CARRIE ANN-MOSS, JADE PINKETT, ELIZABETH TAYLOR, CLAUDIA CARDINALE…KATE HUDSON, EMMA THOMPSON, LETICIA DOLERA, NAOMI WATTS, MARIA SCHRADERBEYONCE’ KNOWLES, BONO, JENNIFER ANISTON…NICOLE KIDMANNICOLE KIDMAN, CHLOE SEVIGNY, ERIKA CHRISTENSEN
BVLGARI 2004 – PRODUCT LAUNCHESBVLGARI 2004 – PRODUCT LAUNCHESJEWELRY WATCHES PERFUMES ACCESSORIES
NEW PRODUCT LAUNCHES
NEW COLLECTIONTO BE PRESENTED IN
BASEL – APRIL
ALREADY PRESENTED:Marryme
(new engagement ring)
NEW COLLECTIONTO BE PRESENTED IN
BASEL - APRIL
LINE EXTENSIONS
ALREADY PRESENTED:Bvlgari-Bvlgari
CharmsNew cufflinks
MORE IN BASEL
ALREADY PRESENTED:BB TOURBILLON
MORE IN BASEL
ALREADY PRESENTED: OMNIA
BATH LINE
APRIL
NEW VERSIONS
ALREADY PRESENTED:Bzero1
Bzero1 pink gold(Special St.Val.edit.)
MORE IN BASEL
ALREADY PRESENTED:Bzero1 ladies watch
DIAGONO PROF. REGATTA DIAGONO PROF.GMT
FLYBACK
MORE IN BASEL
ALREADY PRESENTED:NEW KITS
St.Valentine, Spring, etc.
MORE IN H2
ALREADY PRESENTED:New S/S and F/W
Colors forBzero1, Décolleté,
Geometrica handbagsNew silk items and eyewear collections
MORE IN H2
ADVERTISINGCAMPAIGNS
THE BVLGARI CAMPAIGNS ADVERTISE FIRST OF ALL THE BRAND
NEW, DEDICATED CAMPAIGN
+Mirror, Bzero1 campaigns
NEW, DEDICATEDCAMPAIGN
+Mirror, Bzero1 campaigns
New campaigns
Bzero1 campaigneyewear
BVLGARI 2004 – PR AND PROMOTIONBVLGARI 2004 – PR AND PROMOTIONTYPOLOGY EVENTS DETAILS
CORPORATE PR ACTIVITIES
GRAND OPENINGS
EXHIBITION
IN THE PIPELINE
THE BVLGARI VINTAGE COLLECTION (MIAMI)
EDITORIALSAWARDS
IN THE PIPELINE
MOVIES/TVPRODUCT PLACEMENTS
MOVIES
ORIGINAL SERIES
SOMETHING’S GOTTA GIVEIN THE PIPELINE
SEX AND THE CITY
VIPENDORSEMENTS&AWARDS 2004 RED CARPET
OSCARS/ACADEMY
GRAMMY
OTHERS
NICOLE KIDMAN, JOHNNY DEPP, JENNIFER GARNER, AMBER VALLETTA, DJIMON HOUNSOUKYLIE MINOGUE
IN THE PIPELINE
QUESTIONS & ANSWERSQUESTIONS & ANSWERS
ANNEX
TURN THE PAGE FOR HISTORICAL DATA AND MORE P/L DATA
FOR MORE QUALITATIVE INFORMATION
ON 2003 AND EARLY 2004
PRODUCT LAUNCHES, STORES, PRODUCT PLACEMENTS PLEASE SEE
http://www.bulgari.com
When printing the presentation please choose “Pure B/W” option
HISTORICAL REPORTED REVENUES HISTORICAL REPORTED REVENUES BY PRODUCT LINEBY PRODUCT LINE
% GROWTH AND % ON TOTAL SALES% GROWTH AND % ON TOTAL SALESYOY GROWTH 1998 1999 2000 2001 2002 2003
JEWELS +8 +30 +47 +26 +2.1 +4.7
WATCHES +15 +41 +43 -6 -1.0 -16.6
PERFUMES +63 +18 +15 +37 +4.8 +3.1
ACCESSORIES +292 +41 +53 +48 +3.7 +39.5
ROYALTIESAND OTHER
+87 +25 +15 +11 -17.8 +4.8
BREAKDOWN 1998 1999 2000 2001 2002 2003
JEWELS 33 32 34 38 38 41
WATCHES 42 45 46 39 38 32
PERF. 19 16 14 16 17 18
ACCESS. 3 4 4 5 5 7
ROYALT. OTH 3 3 2 2 2 2
HISTORICAL REPORTED REVENUES HISTORICAL REPORTED REVENUES BY GEOGRAPHICAL AREABY GEOGRAPHICAL AREA
% GROWTH AND % ON TOTAL SALES% GROWTH AND % ON TOTAL SALES
YOY GROWTH 1998 1999 2000 2001 2002 2003
ITALY +33 +17 +43 +19 +2.8 -1.6
EUROPE +15 +20 +38 +24 -3.3 -0.9
AMERICAS +35 +26 +28 -16 -2.0 -6.2
JAPAN +32 +60 +36 +7 +7.3 +0.9
FAR EAST +3 +58 +61 +27 -6.6 +7.5
M.EAST OTH +22 +19 +47 +59 +23.7 -24.6
BREAKDOWN 1998 1999 2000 2001 2002 2003
ITALY 14 13 13 14 14 14
EUROPE 27 24 24 26 25 25
AMERICAS 24 23 21 15 15 14
JAPAN 18 22 21 20 21 22
FAR EAST 12 14 17 18 17 19
M.EAST OT. 5 4 4 7 8 6
EUR MIO. Q1 2003 Q2 2003 Q3 2003 Q4 2003 FY 2003
REVENUES 160.6 169.5 181.9 247.3 759.3
GROSS MARGIN
97.8 108.1 110 158.5 474.4
PERSONNELCOSTS
29.4 28.8 27.7 31.9 117.8
ADV. AND PROMOTION
14.0 20.1 15.5 31.1 80.7
AMOR.&DEPR 8.5 10.1 10.3 10.2 39.1
OTHER GENEXPENSES
29.7 30.2 29.5 30.5 119.9
TOT GENERAL EXP
81.6 89.2 83.0 103.7 357.5
EBIT 16.2 18.9 27.0 54.8 116.9
NON OPER.EXP. INC.MIN.
3.2 3.1 1.4 0.2 7.9
PROFITBEFORE TAX
13.0 15.8 25.6 54.6 109.0
TAXES 1.6 2.2 6.7 6.4 16.9
NET PROFITAFTER TAXES
11.4 13.6 18.9 48.2 92.1
PROFIT AND LOSS OVERVIEW: In Eur MillionsPROFIT AND LOSS OVERVIEW: In Eur Millions
% ON TOTAL REVENUES
Q1 2003 Q2 2003 Q3 2003 Q4 2003 FY 2003
REVENUES 100% 100% 100% 100% 100%
GROSS MARGIN
60.9% 63.8% 60.5% 64.1% 62.5%
PERSONNELCOSTS
18.3% 17.0% 15.2% 12.9% 15.5%
ADV. AND PROMOTION
8.7% 11.9% 8.5% 12.6% 10.6%
AMOR.&DEPR 5.3% 5.9% 5.7% 4.1% 5.2%
OTHER GENEXPENSES
18.5% 17.9% 16.2% 12.4% 15.8%
TOT GENERAL EXP
50.8% 52.7% 45.6% 42.0% 47.1%
EBIT 10.1% 11.1% 14.9% 22.1% 15.4%
NON OPER.EXP. INC.MIN.
2.0% 1.8% 0.8% 0.1% 1.0%
PROFITBEFORE TAX
8.1% 9.3% 14.1% 22.0% 14.4%
TAXES 1.0% 1.3% 3.7% 2.5% 2.3%
NET PROFITAFTER TAXES
7.1% 8.0% 10.4% 19.5% 12.1%
PROFIT AND LOSS OVERVIEW: % on PROFIT AND LOSS OVERVIEW: % on RevenuesRevenues